Millions lost to phone scam cash transfer trick

Scam where victims are conned into moving money into a fraudster's account now widespread.

Some £23.6 million was lost in 2014 thanks to a phone scam that involves tricking a victim into willingly transferring money into a fraudster’s bank account.

That’s according to Financial Fraud Action UK (FFA UK), which says the con is now the most widespread phone scam in the UK.

How it works

While there are variations of this phone scam, the fraud typically works with the criminal calling the victim and pretending to be from their bank.

The fraudster will then convince the victim that fraud has been detected on their account and they need to act fast to protect their money by moving it into a ‘safe account’ - or risk losing it all.

The con is often successful because criminals use techniques, such as ‘spoofing’ the telephone number on a person’s caller ID so it matches their bank’s number, or referencing genuine account information which they have fraudulently obtained elsewhere.

Raising awareness

The data has prompted the Neighbourhood Watch (NHW) network to make the issue the focus of its national awareness week.

NHW’s 173,000 volunteers in England and Wales will tell residents in their local areas to ‘hang up on fraud’. They will ask neighbours to share warnings and pass on advice to three of their friends. It’s hoped this way more than two million people will be reached by the end of the campaign.

Katy Worobec, director of FFA UK, stressed the importance of the campaign: "More and more people have heard about the dangers of phone scams and how they work, but unfortunately there is still a significant number who are unaware that highly professional criminals are systematically targeting members of the public to deceive them out of their savings."  

Jim Maddan, chairman of the NHW (England & Wales), explained volunteers were key to spreading the message. He said: "Neighbourhood Watch co-ordinators are well-known and trusted within their communities and they are keen to be proactive in keeping people safe. They are ideally placed to provide advice to their neighbours, as well as vulnerable people within their neighbourhood, about how they can avoid phone scams."

How to protect yourself

Here are some tips on how to avoid this being conned out of your money through a phone scam:

• Be wary of unsolicited phone calls and especially cold callers who suggest you hang up and call them back. Fraudsters can keep your phone line open by not putting down the receiver at their end.
• If you feel something is suspicious, hang up, wait five minutes to clear the line, or where possible use a different phone line to call your bank or card issuer on their advertised number.
• If you don’t have another telephone to use, call someone you know first to make sure the telephone line is free.
• Remember your bank will never ask you to check the number showing on your telephone display matches their registered telephone number. The display can’t be trusted.
• Bear in mind criminals may already have basic information about you, like your name, address and account details, so don’t assume a caller is genuine based on these.
• Never tell anyone, including the bank or police, your four-digit PIN, your password or online banking codes and any personal detail unless you are sure who you are talking to.

It’s also important to remember that your bank and the police will never:

• Ask for your four-digit card PIN or online banking password, even by tapping them into the telephone keypad.
• Ask you to withdraw money to hand over for safekeeping.
• Ask you to transfer money to a new account for fraud reasons, even if they say it is in your name.
• Send someone to collect your cash, PIN, payment card or cheque book if you are a victim of fraud.
• Ask you to purchase goods using your card and then hand them over for safe-keeping.

If you fall victim to fraud or even if you’re unsure contact your bank and tell them what has happened. You should report the crime to the police through Action Fraud by calling 0300 123 2040.

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