HSBC has issued a warning over a rise in a new type of scam.
The bank has recently revamped its free fraud and cyber awareness app, which is available for people to download regardless of whether they are customers. The app provides warnings about new scams being spotted as well as information on recognising and reporting scams.
David Callington, HSBC UK's head of fraud, said: "We are able to give real-time warnings through push notifications, information and education, to help more people protect themselves and their hard-earned money from these criminals." - as The Daily Record reports.
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HSBC UK highlighted the three most common scams it has seen across cards and payments in the six months from November 2021 to April 2022. The bank warned there was a rise in impersonation scams as criminals may impersonate an organisation such as a bank, retailer or a utility provider.
HSBC warned it is seeing a rising number of impersonation scams originating from calls from fraudsters posing as Amazon. It is also seeing scammers impersonating HSBC UK's fraud team and calling customers to say their account is at risk.
Usually this is after the fraudster has sent a scam text impersonating another organisation - for example, Royal Mail - and requested a small payment which requires the customer to input their account details. The fraudster tells the customer they need to move funds to a "safe account", which is usually an external bank account controlled by the fraudster or, increasingly, a crypto currency trading platform.
HSBC records showed purchase scams were the most common type of scam by volume. This involves fraudsters tricking shoppers into paying in advance for goods or services that are never received.
The bank said it is noticing an increase in purchase scams involving falsely advertised vehicles online. Some involve fake shipping websites that promise to look after funds for vehicles purchased abroad, and some advertise vehicles at well below market value to lure customers in.
Customers are then being convinced to purchase either by putting down deposits or outright payments.
HSBC said investment scams incur bigger losses for its customers than any other type of fraud. These often involve the purchase of fake bonds or cryptocurrency.
HSBC UK warned a typical investment scam could start out with a message or call out of the blue about an investment opportunity that is "too good to miss", and contact can be made with the victim over months, sometimes years, to extract as much money as possible. The bank said it is increasingly seeing scams that involve trading in genuine companies but through a fake intermediary.
The victim can be shown an app or website listing their investments and returns, only to lose contact with the intermediary further down the line. The head of fraud intelligence at Cifas said there has been a rise in scams due to the cost of living crisis.
Amber Burridge said: “Criminals continue to use a variety of ways to take advantage of people struggling with the cost of living crisis. The sophistication of cyber-enabled attacks such as phishing and smishing continues to grow, and once criminals obtain someone’s personal and financial details, it’s likely they will be used to facilitate identity fraud, which accounted for over 60% of cases filed to the National Fraud Database last year.”
If you are ever asked to provide personal or financial information or supply your documents, then take a moment and think carefully about the consequences of parting with your details. Remember that only criminals will try to rush or panic you into making a quick decision.
If you think you have fallen for a scam, contact your bank immediately and report it to Police by dialling 101.
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