Understanding Banking Fraud and Scams
Understanding Banking Fraud and Scams
Banking fraud happens when someone illegally gains access to your bank account or tricks you into sending them money. Scams targeting bank customers are becoming more sophisticated, with criminals using a range of tactics to steal personal information or funds. Understanding how these scams work – and knowing your rights – can help you stay protected.
What Is Banking Fraud?
Banking fraud refers to any illegal activity where criminals obtain money, assets, or personal banking details by deception. This can include unauthorised transactions on your account, identity theft, or being tricked into transferring money to a fraudster. These crimes often target everyday bank customers, but banks themselves can also be victims.
Common Types of Scams
There are many types of scams that target bank customers in the UK. Some of the most common include:
- Phishing: Fraudsters send emails or texts pretending to be from your bank, asking you to confirm account details or click on fake links.
- Vishing: Criminals call you, claiming to be from your bank or the police, and try to get you to reveal sensitive information.
- Authorised Push Payment (APP) Fraud: Scammers trick you into transferring money to their account, often by pretending to be a trusted company or individual.
- Card Fraud: This includes cloning your debit or credit card, or stealing your card details to make unauthorised purchases.
How Criminals Trick People
Fraudsters use psychological tactics to create a sense of urgency or fear. They may:
- Pretend to be from your bank, warning you of suspicious activity.
- Ask you to move your money to a "safe account" (which actually belongs to the criminal).
- Use fake websites or emails that look almost identical to legitimate ones.
- Manipulate caller ID to make it look like your bank is calling.
Being aware of these tactics can help you spot a scam before you become a victim.
Impact of Banking Fraud
The effects of banking fraud can be serious. For individuals, the loss of money can cause significant stress and financial hardship. It can also damage your credit score and take time to resolve. For banks, fraud leads to financial losses, reputational damage, and increased costs for security and compensation.
Legal Protections for Consumers
UK law provides important protections for people affected by banking fraud. Under the Payment Services Regulations 2017, banks must refund unauthorised transactions unless you have acted fraudulently or with gross negligence. If you are tricked into making a payment (such as in APP fraud), many banks have signed up to the Contingent Reimbursement Model Code, which may entitle you to a refund in certain circumstances.
The Financial Conduct Authority (FCA) regulates banks and sets rules to help prevent fraud and protect consumers. The FCA also works to reduce the risk of financial crime and ensure banks have effective systems in place to detect and deal with fraud.
For a wider look at your rights and responsibilities as a bank customer, see our guide to banking basics.
Understanding banking fraud and scams is the first step in protecting yourself. Knowing how criminals operate, recognising common scam tactics, and being aware of your legal rights can make a real difference in keeping your money safe.
Common Types of Banking Fraud and Scams
Common Types of Banking Fraud and Scams
Banking fraud and scams take many forms, and criminals are constantly finding new ways to trick people out of their money. Understanding the most common types can help you spot warning signs and protect yourself.
Phishing Emails and Texts
Phishing is when fraudsters send emails or texts pretending to be from your bank or other trusted organisations. These messages often claim there’s a problem with your account or ask you to confirm personal details. They may look convincing, using official logos and language, but their aim is to steal your bank details or passwords. Never click on suspicious links or share sensitive information in response to unsolicited messages.
Online Banking Fraud
Online banking fraud includes attacks like malware, viruses, or hacking attempts designed to access your bank account. Criminals may trick you into downloading harmful software that records your keystrokes or lets them take control of your computer. Always keep your devices updated, use strong passwords, and be wary of unexpected pop-ups or requests for information.
Telephone Scams
Some scammers will call you, pretending to be from your bank’s fraud team or customer service. They might claim there’s been suspicious activity on your account and ask you to confirm your identity or move money to a “safe” account. Genuine banks will never ask you to transfer money or reveal your full PIN or password over the phone. If in doubt, hang up and call your bank directly using the number on your bank card.
Card Fraud
Card fraud can happen if someone steals or clones your debit or credit card details. Criminals may use skimming devices at cash machines or shops to copy your card information, or they might exploit contactless technology to make unauthorised payments. Always keep your card in sight when making payments, regularly check your statements for unusual transactions, and report lost or stolen cards to your bank immediately.
Investment and Loan Scams
Fraudsters sometimes offer fake investment opportunities or bogus loans linked to banks. These scams often promise high returns or quick cash, but they are designed to steal your money or personal information. Always check if a firm is authorised by the Financial Conduct Authority (FCA) before investing or taking out a loan. The FCA regulates financial firms and provides guidance on how to avoid falling victim to fraud.
Knowing the warning signs is the first step to keeping your money safe. For more expert tips on spotting and avoiding scams, visit our dedicated guide. If you think you’ve been targeted or have lost money, it’s important to act quickly – contact your bank and report the fraud to the authorities right away.
How Fraudsters Trick You
How Fraudsters Trick You
Fraudsters use a range of clever tactics to deceive people and gain access to their bank accounts or personal information. Understanding how these scams work can help you spot the warning signs and protect yourself.
Gaining Your Trust or Creating Panic
Criminals often pretend to be someone you trust, such as your bank, the police, or a well-known company. They may contact you by phone, text, email, or even social media. Their goal is to make you believe the request is genuine, so you feel comfortable sharing sensitive information.
A common technique is to create a sense of urgency or panic. For example, a fraudster might claim there has been suspicious activity on your account and you need to act quickly to stop your money being stolen. They may pressure you to move your money to a “safe” account or ask for your PIN or online banking password. Remember, your bank will never ask for your full password or PIN, or to move money to another account for security reasons.
Fake Websites and Emails
Fraudsters are skilled at creating emails and websites that look almost identical to those of real banks. These fake communications often use official logos, language, and even similar web addresses. The aim is to trick you into entering your login details or other personal information.
This type of scam is known as “phishing.” For example, you might receive an email that looks like it’s from your bank, asking you to click a link and confirm your details. The link leads to a fake website, and any information you enter goes straight to the criminals. Always check the web address carefully and avoid clicking on suspicious links.
Social Engineering Tactics
Social engineering involves manipulating people into giving away confidential information. Fraudsters may gather details about you from social media or public records, then use this information to make their scam more convincing. They might know your name, address, or even recent transactions, making their story seem more believable.
Some criminals use “vishing” (voice phishing), where they call you pretending to be from your bank or another trusted organisation. Others use “smishing” (SMS phishing), sending text messages that appear to be from your bank, often with urgent requests or links.
Common Red Flags
While scams can be sophisticated, there are some common warning signs to watch out for:
- Unexpected contact: Be wary if you’re contacted out of the blue by someone claiming to be from your bank or another official organisation.
- Requests for sensitive information: Legitimate banks will never ask for your full PIN, password, or to move money to a different account.
- Urgency and pressure: Scammers often try to rush you into making quick decisions.
- Unusual sender details: Check the sender’s email address or phone number for anything unusual or misspelled.
- Poor spelling or grammar: Many scam messages contain mistakes or awkward phrasing.
- Suspicious links: Hover over links to see where they really lead before clicking.
Legal Protections
In the UK, the Payment Services Regulations 2017 and the Contingent Reimbursement Model Code (CRM Code) set out how banks should protect customers from fraud and what happens if you are a victim. Banks are required to have strong security measures in place and to act quickly if you report suspected fraud. If you are tricked into transferring money to a fraudster (known as Authorised Push Payment fraud), you may be entitled to a refund, depending on the circumstances and your bank’s policies.
By staying alert to these tactics and knowing your rights, you can reduce your risk of falling victim to banking fraud. If something doesn’t feel right, it’s always best to double-check directly with your bank using official contact details.
Your Rights if You Become a Victim of Banking Fraud
When you become a victim of banking fraud in the UK, it’s important to know that the law offers you specific protections. Here’s what you need to know about your rights, how to challenge unauthorised transactions, and what your bank must do to help.
Legal Protection Against Bank Fraud
UK law, particularly the Payment Services Regulations 2017, is clear: if someone takes money from your bank account without your permission, you are generally not liable for those losses. This applies whether the fraud happened through online scams, card theft, or other means. Your bank is usually required to refund you for unauthorised transactions, provided you haven’t acted fraudulently or with gross negligence (for example, by sharing your PIN or password with someone else).
To understand more about your general protections and obligations as a bank customer, see your banking rights.
Challenging Unauthorised Transactions
If you spot a transaction you don’t recognise, you have the right to challenge it. Contact your bank as soon as possible – ideally within 13 months of the transaction appearing on your account. The sooner you report it, the better your chances of recovering your money. Your bank must investigate your claim and, unless they have evidence that you authorised the payment or acted negligently, they should refund you promptly.
If you need guidance on how to challenge these transactions or correct mistakes, visit our section on disputing bank errors and disputes.
How Banks Investigate Fraud Claims
Banks are legally obliged to look into reports of fraud quickly and fairly. They may ask you for details about the transaction and how you believe the fraud occurred. While your bank investigates, they should keep you updated and, in most cases, refund the disputed amount by the end of the next business day – unless they have reason to suspect fraud or negligence on your part.
If you feel your bank isn’t taking your case seriously or is refusing a refund without good reason, you can escalate your complaint to the Financial Ombudsman Service. The Ombudsman can review your case independently and help resolve disputes between you and your bank.
Limits and Conditions on Liability
While the law is on your side, there are some important limits:
- If you acted fraudulently or with gross negligence (such as sharing your security details or failing to report a lost card promptly), you may be held liable for losses.
- If you delay reporting fraud, you could lose the right to a refund. Always notify your bank as soon as you notice something wrong.
- For contactless or low-value payments, you may be liable for up to £35 of any losses before you report the fraud, unless your bank waives this.
Remember, banks and authorities are working to protect customers, but your vigilance is key. If you ever feel unsure about your rights or how your case is being handled, don’t hesitate to seek further help from the Financial Ombudsman Service.
Understanding your rights is the first step to protecting yourself and ensuring you get the support you deserve if you’re affected by banking fraud.
What to Do Immediately After Suspecting Fraud
What to Do Immediately After Suspecting Fraud
If you notice unusual activity on your bank account – such as unexpected transactions, missing funds, or unfamiliar login alerts – it’s crucial to act quickly. Taking the right steps straight away can help limit any loss and increase the chances of recovering your money.
1. Contact Your Bank Without Delay
As soon as you suspect fraud or a scam, contact your bank immediately using their official phone number or secure online channels (never use contact details from suspicious emails or texts). Most banks in the UK have 24-hour helplines for reporting fraud. By acting fast, you give your bank the best chance to freeze accounts, block payments, and prevent further unauthorised transactions.
Banks in the UK are required under the Payment Services Regulations 2017 to refund unauthorised payments promptly, unless you have acted fraudulently or with gross negligence. The sooner you report the issue, the stronger your position under these legal protections.
2. Preserve Evidence and Keep Records
Keep a detailed record of what happened, including:
- The date and time you noticed the suspicious activity
- A list of any unauthorised transactions or communications
- Screenshots, emails, or text messages related to the scam
- The names and contact details of anyone you speak to at your bank
This information can be crucial if you need to make a formal complaint, report the crime to the police, or prove your case for a refund. Do not delete any relevant emails or texts, even if they seem threatening or upsetting.
3. Stop Future Payments
If you believe that your account details have been compromised, or if you’ve given permission for ongoing payments to a fraudulent party (such as a subscription or direct debit), take immediate steps to stop future payments. This can help prevent further money being taken from your account. Your bank can guide you through the process of cancelling direct debits, standing orders, or recurring card payments.
4. Monitor Your Accounts Closely
After reporting the fraud, keep a close eye on all your bank and credit card accounts for any further suspicious activity. Notify your bank right away if you spot anything else unusual.
Acting quickly and following these steps can make a significant difference in limiting the damage from banking fraud or scams. If you want to learn more about how to spot scams or protect yourself from future threats, explore the other sections of this guide.
Filing Complaints and Seeking Compensation
Filing Complaints and Seeking Compensation
If you’ve fallen victim to banking fraud or a scam, it’s important to act quickly to report the issue and seek help. The law in the UK offers protections for consumers, and banks are required to investigate fraud complaints thoroughly. Here’s what you need to know about raising complaints and pursuing compensation.
How to Raise a Complaint with Your Bank
Start by contacting your bank as soon as you notice any suspicious activity or realise you’ve been scammed. Most banks have dedicated fraud teams and 24/7 helplines. When you make a complaint, provide as much detail as possible – such as dates, transaction amounts, and any communications you received from the fraudsters.
For a step-by-step guide on making a bank complaint about fraud, including what information to provide and how your bank should respond, see our detailed process page.
What to Expect During the Complaint Process
Once you’ve reported the issue, your bank must investigate your complaint fairly and promptly, following rules set out by the Financial Conduct Authority (FCA) and the Payment Services Regulations 2017. Banks typically have up to 15 business days to respond to payment-related complaints, including fraud. They may extend this to 35 days in exceptional circumstances, but they must keep you informed.
During the investigation, your bank may temporarily refund the disputed amount while they look into your case. They’ll also review whether you took reasonable care to protect your account, such as not sharing your PIN or passwords. If your bank finds that you were not at fault, you should receive a full refund. However, if you acted with gross negligence or authorised the payment, your bank may refuse compensation.
Escalating Your Complaint
If you’re not satisfied with your bank’s response or if they take too long to resolve your complaint, you have the right to escalate the matter. The next step is to contact the Financial Ombudsman Service, which provides an independent review of your case. The Ombudsman can look into whether your bank handled your complaint fairly and, if not, may order the bank to compensate you.
This service is free for consumers and covers a wide range of fraud and scam complaints, including unauthorised payments, authorised push payment (APP) scams, and situations where your bank failed to protect you. For more information, see the Fraud and scams Financial Ombudsman service.
Compensation Schemes and Protections
UK law offers several protections for victims of banking fraud:
- Unauthorised Transactions: Under the Payment Services Regulations 2017, you’re usually entitled to a refund if someone makes an unauthorised payment from your account, unless you acted fraudulently or with gross negligence.
- Authorised Push Payment (APP) Scams: Many UK banks have signed up to the Contingent Reimbursement Model (CRM) Code, which sets out when victims of APP scams should be reimbursed. Even if your bank isn’t a signatory, they must still treat you fairly and consider your case carefully.
- Bank’s Duty of Care: Banks are expected to have systems in place to detect and prevent fraud, and to warn customers about potential scams.
If your complaint is upheld, you may receive a full or partial refund, along with compensation for any distress or inconvenience. If you’re unsure about your rights or need help with the process, the Financial Ombudsman Service offers clear guidance and support.
Taking prompt action and understanding your rights can make a big difference in recovering lost funds and holding your bank accountable. If you need help with making a bank complaint or want to know more about escalating your case, explore our related resources for practical advice.
How Banks and Authorities Protect You
Banks and UK authorities work together to protect you from fraud and scams, using a combination of technology, industry standards, and legal requirements. Here’s how they help keep your money and personal information safe:
How Banks Detect and Prevent Fraud
Banks invest heavily in advanced security systems to spot suspicious activity. This includes monitoring your account for unusual transactions, such as large transfers or payments to new recipients. Many banks use real-time alerts – like text messages or app notifications – to let you know if something looks out of the ordinary. If fraud is suspected, your bank may temporarily freeze your account or block certain transactions until they can confirm they’re genuine.
Banks are also required to follow strict regulations under UK law, such as the Payment Services Regulations 2017 and the Financial Services and Markets Act 2000. These laws set out how banks must protect your data, verify your identity, and respond to fraud. To learn more about the rules that protect your money, see our section on banking protections.
The Role of UK Authorities
Several UK bodies play a key role in fighting banking fraud:
- Action Fraud is the UK’s national reporting centre for fraud and cybercrime. If you think you’ve been scammed, you can report it to Action Fraud, who will pass the details to the police for investigation.
- The Financial Conduct Authority (FCA) regulates banks and other financial firms, making sure they follow rules designed to protect consumers. The FCA sets standards for how banks must handle complaints, investigate fraud, and treat customers fairly.
- The Financial Ombudsman Service can help if you’re unhappy with how your bank has handled a fraud case.
These organisations work together to track scam trends, warn the public about new threats, and take action against criminals.
How Banks Recover Lost Funds
If you lose money due to fraud or a scam, your bank will try to recover the funds. Under the Payment Services Regulations, you are usually entitled to a refund if someone makes an unauthorised payment from your account, as long as you didn’t act fraudulently or with “gross negligence” (such as sharing your PIN).
For authorised push payment (APP) scams – where you’re tricked into sending money yourself – the rules can be more complicated. Many banks have signed up to the Contingent Reimbursement Model Code, which sets out when you may get your money back. Banks will investigate your case and may be able to recover funds if they act quickly, especially if the money hasn’t yet left the scammer’s account.
Your Role: Staying Vigilant
While banks and authorities do a lot to protect you, your actions make a big difference. Always:
- Keep your passwords and PINs secret.
- Be wary of unexpected calls, texts, or emails asking for personal details.
- Double-check account details before sending money.
- Report any suspicious activity to your bank immediately.
By working together – banks, authorities, and customers – the risk of falling victim to banking fraud can be reduced. If you want to know more about your rights and the steps you should take after a scam, explore the rest of our guidance on banking fraud, scams, and security.
Bank Security Measures
Bank Security Measures
Banks in the UK use a range of security measures to help protect customers from fraud and scams. These tools and processes are designed not only to keep your money safe, but also to comply with strict legal and regulatory standards.
Two-Factor Authentication and Secure Login Processes
One of the most effective ways banks protect your accounts is through two-factor authentication (2FA). This means that, in addition to your password, you must provide a second piece of information – such as a code sent to your phone, or a fingerprint scan – before you can access your account online or via mobile banking. Secure login processes like these make it much harder for criminals to gain access, even if they know your password.
Banks are required to follow strong customer authentication rules under the Payment Services Regulations 2017. These rules set a legal standard for verifying your identity and help prevent unauthorised access to your accounts.
Monitoring Unusual Account Activity
Banks use sophisticated systems to monitor your account for unusual or suspicious activity. This can include transactions that are larger than normal, payments to new recipients, or access attempts from unfamiliar locations or devices. If something looks out of the ordinary, your bank may temporarily block the transaction and contact you to confirm it is genuine.
These monitoring practices are not only good customer service – they are also part of banks’ obligations under anti-fraud and anti-money laundering laws. The Financial Conduct Authority (FCA) sets out clear expectations for how banks should detect and respond to potential fraud.
Fraud Detection Software and Alerts
Banks invest heavily in advanced fraud detection software. These systems use artificial intelligence and machine learning to spot patterns that could indicate fraud, often stopping scams before they happen. If a suspicious transaction is detected, you may receive an alert by text, email, or phone, asking you to confirm whether the payment is legitimate.
If you receive such an alert, it is important to respond promptly. Never share your full PIN or password in response to a message – banks will never ask for this information in full.
Customer Education Programmes
Banks also run regular customer education programmes to help you recognise and avoid scams. These might include information on their websites, email updates, or even in-branch workshops. Topics often cover how to spot phishing emails, avoid common scams, and use online banking safely.
Educating customers is a key part of the legal framework for fraud prevention. Under the Data Protection Act 2018, banks must handle your personal data responsibly, but they are also encouraged to share information where necessary to protect you from fraud. The Information Commissioner’s Office (ICO) has made it clear that data protection should not be used as an excuse to avoid tackling scams and fraud.
Bank security is a shared responsibility. By understanding the measures banks use and staying alert to potential scams, you can help keep your money and information safe. If you ever notice suspicious activity or receive a warning from your bank, act quickly and contact them directly using a trusted phone number or their official website. For more details on how banks and regulators work to prevent fraud, see the Financial Conduct Authority (FCA) guidance.
Reporting Fraud to Authorities
Reporting Fraud to Authorities
If you believe you have been a victim of banking fraud or a scam, it’s important to act quickly. Reporting the incident to the right authorities can help stop further losses, support investigations, and may increase the chances of recovering your money.
How to Report Fraud
In the UK, most types of banking fraud and scams should be reported to Action Fraud, the national fraud and cybercrime reporting centre. You can report online at any time, or by phone during their opening hours. If you believe a crime is in progress or you are at immediate risk, you should call 999.
For certain kinds of fraud – such as investment scams, pension fraud, or if you are a business affected by fraud – there may be additional bodies to contact, such as the Financial Conduct Authority (FCA) or your local police. However, Action Fraud is the main point of contact for most individuals.
Information You Need to Provide
When reporting fraud, be prepared to give as much detail as possible. This helps authorities investigate and take action. You will usually need to provide:
- Your personal details (name, contact information, address)
- Details of the fraud or scam (how and when it happened, what was said or sent to you)
- Information about the fraudster (if known, such as names, phone numbers, email addresses, or bank details)
- Details of any financial loss (amount of money lost, account details, reference numbers)
- Evidence (screenshots, emails, letters, or any other documents related to the scam)
Providing full and accurate information can speed up the process and improve the chances of a successful investigation.
What Happens After You Report Fraud
Once you report fraud to Action Fraud, you will receive a crime reference number. Your report will be assessed and, where appropriate, passed to the National Fraud Intelligence Bureau (NFIB), which analyses fraud reports for patterns and potential leads.
Not every report results in a direct police investigation. Due to the high volume and complexity of fraud cases, authorities focus on cases where there is enough evidence to pursue. However, your report contributes to national intelligence, helping to identify and disrupt criminal networks.
You may be contacted for further information, or to provide a statement. If your case is taken forward, the police may get in touch to update you on progress.
How Authorities Coordinate with Banks
Authorities such as Action Fraud, the police, and the NFIB work closely with banks and financial institutions. When you report fraud, your bank is usually notified so they can take steps to protect your accounts, such as freezing suspicious transactions or monitoring for further activity.
Banks are required under the Payment Services Regulations 2017 to investigate unauthorised transactions and may be obliged to refund victims, depending on the circumstances. The authorities and banks will often share information to trace stolen funds, identify suspects, and prevent further fraud.
If you have already informed your bank about the fraud, make sure to mention this when reporting to Action Fraud, and provide any reference numbers or correspondence you have received.
Reporting fraud quickly gives the best chance of stopping further losses and helps protect others from falling victim to similar scams.
Managing Your Bank Account After Fraud
When you become a victim of banking fraud, it can have a significant impact on how you manage your bank account. Understanding the possible consequences and your options can help you regain control and protect your finances.
Possible Consequences: Account Freezing or Closure
After fraud is reported, your bank may take immediate action to protect your money. This often includes temporarily freezing or blocking your account to prevent further unauthorised transactions. In more severe cases, especially if there are ongoing concerns about account misuse, your bank may decide to close your account altogether.
These actions are designed to comply with legal obligations under regulations such as the Financial Services and Markets Act 2000, which sets out how banks must respond to financial crime and safeguard customer funds.
Handling Frozen or Blocked Accounts
If your account has been frozen, you may be unable to access your money or make payments. It’s important to contact your bank straight away to understand the reason for the freeze and what steps are needed to resolve the issue. Banks usually require you to verify your identity and may ask for details about recent transactions.
For more detailed guidance on what to do if your account is affected, see our advice on frozen or blocked accounts.
What If Your Bank Closes Your Account?
If your bank decides to close your account following fraud, they are required to notify you and give you a chance to withdraw your funds, unless there are legal reasons not to. Account closures can happen if the bank believes there is a risk of further fraud or if required by law.
You have rights in these situations, and it’s important to understand the process and what you can do next. For step-by-step guidance, visit our page on bank account closure.
Opening a New Bank Account Safely
If your account has been closed, you may need to open a new one. Take extra care to protect yourself from future fraud by choosing a reputable bank and using strong security measures such as unique passwords and two-factor authentication.
For practical tips on opening a bank account safely after fraud, see our dedicated guide.
Staying Informed and Protected
Banking fraud is an evolving threat, and banks are continually updating their security measures. For the latest trends and expert advice on fraud prevention, you can read the Annual Fraud Report 2025 | Policy and Guidance | UK Finance.
By knowing your rights and the steps to take after fraud, you can manage your bank account with confidence and reduce the risk of future scams.
Preventing Banking Fraud and Scams
Preventing Banking Fraud and Scams
Banking fraud and scams are becoming more sophisticated in the UK, but there are practical steps you can take to protect your money and personal information. Understanding how criminals operate, staying alert to suspicious activity, and following some simple security measures can make a big difference.
Protecting Your Banking Details and Accounts
Keep your account details private at all times. Never share your PIN, full password, or security codes with anyone, not even your bank. Genuine banks will never ask for this information over the phone, by email, or via text. If someone contacts you unexpectedly and asks for sensitive details, treat it as a red flag.
Always log out of online banking sessions when finished, especially if using a shared or public device. Shred documents containing personal or financial information before throwing them away, and regularly check your bank statements for any transactions you don’t recognise.
Recognising Scam Attempts and Avoiding Common Traps
Scammers use various tactics to trick people, including phone calls, emails, texts, and fake websites. Watch out for messages that create a sense of urgency, such as threats to freeze your account or offers that seem too good to be true. Be wary of links or attachments in unsolicited emails or texts, as these can lead to fraudulent sites or install malware.
If you’re unsure whether a message or call is genuine, contact your bank directly using the official number from their website or the back of your bank card – never use contact details provided in the suspicious message.
For more advice on spotting and avoiding scams, including the most common warning signs and what to do if you’re targeted, see our expert guide.
Keeping Your Devices and Passwords Secure
Protect your devices with up-to-date antivirus software and install security updates as soon as they become available. Use strong, unique passwords for your banking accounts and change them regularly. Avoid using easily guessed information, such as birthdays or names, and consider using a password manager to keep track of your login details securely.
Enable two-factor authentication (2FA) if your bank offers it, as this adds an extra layer of protection by requiring a second form of identification.
Using Official Bank Communication Channels
Always use your bank’s official website or app to access your accounts. Bookmark the correct web address or use your bank’s official mobile app to avoid fake sites that mimic real ones. If you receive a call from someone claiming to be from your bank, hang up and call back using the number on your card or bank statement.
Banks in the UK must follow strict regulations, such as the Payment Services Regulations 2017 and guidance from the Financial Conduct Authority (FCA), to protect your money and personal data. They also have procedures in place to help you if you think your account has been compromised.
Learn More
Understanding the legal background and the different types of scams can help you stay one step ahead. Taking these precautions and knowing your rights will put you in a stronger position to prevent fraud and respond quickly if you ever become a victim.
Understanding Related Banking Issues
Fraud doesn’t just result in stolen funds – it can also impact your everyday banking in ways you might not expect. Understanding these related issues can help you respond quickly and protect your rights if fraud strikes.
How Fraud Can Affect Your Bank Charges and Interest
If criminals gain access to your account, they may make unauthorised transactions that leave you overdrawn or result in unexpected fees. For example, fraudulent withdrawals could push your account into overdraft, triggering charges or higher interest rates. In some cases, you might also lose out on interest you would have earned if your balance hadn’t been affected by the scam.
Banks in the UK are required by law to refund unauthorised transactions promptly, provided you haven’t acted fraudulently or with “gross negligence” (such as sharing your PIN or online banking details). However, it’s important to check your statements regularly and report any suspicious activity as soon as possible to minimise potential charges or lost interest.
To learn more about how these issues might affect your finances, see our detailed guide on bank charges and interest.
Dealing with Errors or Disputes Linked to Suspected Fraud
Fraud can sometimes lead to confusion or mistakes on your account. For instance, your bank may freeze your account while investigating suspicious activity, or you might notice errors in your statement after a scam attempt. If you disagree with your bank’s response or think an error has been made, you have the right to raise a dispute.
Under the Payment Services Regulations 2017, banks must investigate and resolve complaints about unauthorised transactions quickly. If you’re unhappy with the outcome, you can escalate your complaint to the Financial Ombudsman Service for an independent review.
For step-by-step advice on resolving these situations, visit our page on bank errors and disputes.
Whistleblowing Protections for Employees Who Report Fraud
Banking fraud doesn’t just affect customers – employees may also discover wrongdoing in the workplace. If you suspect or witness fraudulent activity at your bank or financial institution, you have legal protections when reporting it. The Public Interest Disclosure Act 1998 (PIDA) safeguards whistleblowers from dismissal or unfair treatment when they raise genuine concerns about fraud or other illegal conduct.
You don’t have to prove the fraud, only that you reasonably believe malpractice is taking place. Protections apply whether you report directly to your employer or to certain external bodies (“prescribed persons”), such as regulators.
To understand your rights and the correct procedures, see our comprehensive overview of whistleblowing employee protections.
By knowing how fraud can affect your charges, how to challenge errors, and what protections exist for whistleblowers, you can better navigate the challenges that come with banking fraud. If you need further guidance, explore the linked resources above for practical steps and legal support.
