Consumers alerted to new banking scam

A new scam is doing the rounds which, so far this year, has netted £750,000 for the fraudsters. What happens is that the potential victims are telephoned by the fraudsters who claim to be from their bank. They are then told that there has been fraudulent activity on their account and that their debit or credit card needs to be collected from them so that it can be replaced.

The victim is then asked to key in their PIN number on the telephone. A courier is then sent to collect the card supposedly so that it can be changed by the bank. Instead it is delivered to the criminals who then have the card and the PIN number. If the victim queries this, the fraudster will suggest that they telephone their bank to verify the call.

The fraudster will stay on the line, however, and fool the victim into thinking that they are speaking to their bank. An unbelievable amount of people are falling for this scam with £1.5 million being lost by victims so far. It seems to be getting worse because half of that amount was lost in the first four months of this year.

This follows a survey of four thousand people by the Payments Council which found that over three-quarters felt confident that they would recognize a fraudulent call. When they heard about this scam, however, more than half of them were amazed at how sophisticated it was. Two thirds of the people then felt more vulnerable to fraud and four fifths of those surveyed felt that anyone could become a victim of fraud.