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:
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
Be on the lookout for spelling mistakes and bad grammar—they're telltale signs of a scam
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
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
After hanging up, use a different phone or wait 20 minutes before calling back to ensure the fraudster is not on the line
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
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
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
Report lost or stolen cards immediately to your bank
Types of bank scams
Email scams (phishing)
Phone scams (Vishing)
SMS phishing (Smishing)
Money transfer scams
Contactless card fraud
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 their official number. You can report the scam to the police via Action Fraud here, or by calling 0300 123 2040.
What will be refunded if I have been scammed?
Banks are obligated to refund stolen money due to fraud or identity theft, provided you weren't 'grossly negligent.' A voluntary code from May 2019 also stipulates that banks should reimburse customers who fall victim to bank transfer scams, provided they weren't at fault.
However, there have been instances where consumers have struggled to get their money back under this protection.
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 defense against the dark arts of bank fraud. Keep your wits about you, and your finances secure.
