A major bank is warning over little known ‘CEO fraud’ impersonation scams which has seen victims lose almost £11,000 on average in the past year.
This is a less common impersonation scam which Lloyds Bank has seen an uptick in and results in the highest average loss amount of this scam type.
With this ruse, scammers pretend to be a senior member of staff at a company and contact the victim – typically a member of staff at the same company – telling them to make an urgent payment.
Lloyds Bank has issued a warning about a little known and fast growing ‘CEO fraud’ scam which has seen customers lose almost £11,000 on average
This could be an invoice they claim needs paying, but which they’re unable to make themselves.
Or, they might ask the victim to purchase multiple gift cards for other staff members, under the guise of a ‘bonus’.
The warning comes as impersonation scams on the whole jumped by 13 per cent over the last year.
In 2023 victims of impersonation scams lost over £3,000 on average, compared to over £3,400 during the previous year.
Those falling victim to ‘CEO fraud’ were tricked out of the most cash by impersonation scammers though, as victims lost an average £10,918 to this scam last year.
Police or bank staff scam
Scams where scammers pretend to be a police officer or bank staff have become the most popular type of impersonation scam, but victims of ‘CEO fraud’ still lost more than double the amount lost by those tricked by police or bank staff impersonation scams.
Not only are police or bank staff scams the fastest growing type of impersonation scam, Lloyds Bank data shows it was also the most common.
Fraudsters carrying out bank impersonation scams claim the victim’s bank account is at risk and ask them to move their money to a ‘safe account’.
They may ask their victim to download an app to help move the money safely, but the victim is actually handing account access to a criminal.
When posing as a police officer, the fraudster will usually tell victims they need their help with a police investigation involving their bank, then ask for money to be moved to another account, to help ‘catch’ a criminal.
These scams have been successful for fraudsters beause they can take advantage of the authority of these occupations and the trust victims have in them.
While cases have risen, figres show the average amount lost in police and bank impersonation scams has fallen by 31 per cent over the past year, with victims losing on average £5,318, compared to over £7,700 in the previous year.
Other impersonation scams to watch out for
Vctims of other types of impersonation scams lost over £1,870 on average last year. This includes those involving the impersonation of a friend or family member on Whatsapp, known as ‘Hi mum’ scams .
Another common trick for scammers is pretending to be retail giant Amazon knowing that many consumers regularly shop online.
Victims will be contacted and told there is a problem with their Amazon account, or that they’re due a refund and then asked to fill in a form, click a link or download some software – ultimately these are all ways scammers can gain access to the victim’s personal data.
Scammers are becoming more advanced with their impersonations and don’t just relying on impersonating big well-known brands any more.
During 2023, Lloyds Bank also saw reports of scammers impersonating tradesmen such as plumbers and gardeners.
How to avoid falling into an impersonation trap
Be wary of any calls or texts you receive from numbers or email addresses which aren’t already stored in your contacts, even if it appears to be from someone you know.
Your bank, the police or any genuine organisation or company will never ask you to move money or to give your card details, under any circumstances – always remember that.
They will also never ask you download something onto your computer or other device. If in doubt, hang up and call to check using a number you trust, not one you’ve been given over the phone.
Be careful if you’re contacted and asked to fill in a form online to process a refund. Contact the organisation, using details you’ve looked up elsewhere and not details given on any form, so you can check if the request is real.
Do not download any software to your compute, tablet or phone if you have instructed to do so by a cold caller. This often comes in the guise of someone from ‘Microsoft’ saying they are helping fix a problem or safety issue with your computer, but fraudsters can also pretend to be from Amazon, utility companies or banks.
The bottom line is always double check and don’t be rushed into anything – if a message over Whatsapp or text is claiming to be from someone you know, contact them in a different way to confirm they are really who they say they are.
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