How to avoid the most common bank scams
Fraudsters are using ever more sophisticated scams to con us out of our cash. Our guide explains how you can avoid being a victim
Key takeaways
Scammers often imitate genuine companies and are always using different techniques to steal financial information.
Always verify recipients’ identities before sharing bank details and monitor bank statements regularly.
Report a scam by contacting your bank immediately using their official number and the police.
Most companies won’t ask for financial details over email or text.
What is bank fraud?
Bank and financial fraud involves criminals using illegal tactics to trick people into transferring money or divulging their personal information.
They can then use this information to access the person’s bank account, or to apply for credit in their name.
What are the different types of bank scam?
There are lots of different scams around, but here are the five most common:
Types of bank scams
Email scams (phishing)
Phishing is a digital con where emails, dressed up to look like they're from your bank or a trusted organisation, aim to lure you into providing personal information or clicking on malicious links. These emails can be very convincing, complete with official logos, addresses, and specific details.
How to avoid this scam:
Never click on unsolicited links in emails
Don’t rely on spelling mistakes to spot scams. Fraudulent emails and texts can look professional, use real logos and copy the tone of genuine companies.
If an email seems urgent or rushed and is forcing you into making a decision quickly, it may be from a criminal
Check the sender's email address; it often reveals the email's true origin
Delete any email that raises suspicion
Phone scams (Vishing)
Vishing scams are made through the telephone, with scammers calling you, posing as bank officials or reputable organisations, and using scare tactics about fraudulent activity on your account to extract sensitive information.
How to avoid this scam:
Remember, banks and financial organisations will never ask for your PIN or passwords over the phone
If in doubt, hang up and call back using the bank's official customer service number
If in doubt, hang up. Call your bank using the number on the back of your card, in your banking app or on its official website. Use a different phone if you can, or wait a few minutes before calling back.
SMS phishing (Smishing)
Smishing scams involve text messages that impersonate family members or use alarming language to trick you into compromising your financial security.
How to avoid this scam:
Ignore messages from unknown numbers and never reply
Avoid clicking on links within text messages
Never share personal details over SMS
Block suspicious numbers and delete suspect messages
Money transfer scams
Also known as Authorized Push Payment (APP) fraud, this scam dupes you into willingly transferring money to a fraudster's account, often under false pretences.
How to avoid this scam:
Double and triple check payment details before transferring any money
Look out for poor spelling, grammar, or punctuation in communications
Trust your instincts—if something feels off, don't send the money
Use Confirmation of Payee where available. Check that the name on the account matches the person or business you expect to pay, and stop if your bank shows a warning.
Contactless card fraud
This scam exploits contactless payment technology, allowing thieves to make transactions without needing your PIN.
How to avoid this scam:
Keep your cards secure and never share your PIN
Check the payment amount before approving a transaction
Impersonation scams
Criminals pretend to be your bank, HMRC, the police, a delivery company or even a family member to pressure you into sending money or sharing security details.
Investment scams
Fraudsters offer fake or misleading investment opportunities, often promising high returns with little risk. Be wary of pressure to invest quickly or move money to a new platform.
How to prevent bank fraud
Prevention is better than cure when it comes to bank fraud and here’s a checklist of measures to lower the risk of becoming a victim of a bank scam:
Shred personal documents before discarding them
Never share your bank details unless you're certain of the recipient's identity
Verify the identity of callers claiming to be from your bank
Be wary of pressure to act immediately—it's a common tactic used by scammers
Monitor your bank statements regularly for any unauthorised transactions
Use official banking websites or apps for all your financial activities
Install and update security software on your devices
Avoid using public Wi-Fi for banking transactions
Choose complex passwords and change them regularly
Check your privacy settings on social networks and other platforms
Be cautious with messages and emails—if in doubt, don't engage
What is the best way to report a scam?
If you've fallen prey to a scam, time is of the essence. Contact your bank immediately using the number on its official website, app or the back of your card. You should also report the scam to Report Fraud, the UK’s national reporting service for fraud and cyber crime. If you live in Scotland, report it to Police Scotland by calling 101.
What will I be refunded if I have been scammed?
If money is taken from your account without your permission, your bank should usually refund you unless it believes you acted fraudulently or with gross negligence.
If you were tricked into sending money to a scammer, this is known as authorised push payment, or APP, fraud. Since October 2024, many APP scam victims must be reimbursed by their bank or payment provider, usually up to a limit of £85,000, as long as the claim is eligible.
Not every case is covered. The rules can depend on how the payment was made, where the money was sent, and whether you ignored clear warnings. Contact your bank as soon as possible and keep evidence of messages, calls and payment details.
What happens if my bank rejects my claim?
Should your bank dismiss your claim, you're not out of options. The free Financial Ombudsman Service is at your disposal to review your complaint, offering an impartial judgment.
Personal Finance & Insurance Expert
Our expert says...
Banking fraud is a worrying and growing trend, with fraudsters coming up with new ways to con us out of our money every day.
It can be hard to spot a scam as the criminals use clever tricks to convince us that they are from a genuine company or institution, such as your bank or the tax office. Yet, if you are a victim there is help on hand, you need to immediately tell your bank and report it to Action Fraud and the money should be returned to you. If not, you also have the ombudsman where you can go for help.
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Remember, staying vigilant and informed is your best defence against the dark arts of bank fraud. Keep your wits about you, and your finances secure.
Author
Rebecca Goodman
Personal Finance & Insurance Expert
Rebecca is an award-winning financial journalist with over a decade of experience writing for print and online media. Her mission is to take the jargon out of personal finance and to help everyone...
Reviewer
Alan Cairns
Senior Content Editor
Alan breaks down money, home, and energy topics into plain English to help you save money. Ask him about pound cost averaging or Balkonkraftwerk.
