Simple signs to look out for, and steps you can take to prevent banking fraud.
Written by guest author Yvonne Scott, Senior Financial Crime Manager at Hampden Bank. Hampden Bank are a trusted partner of Money Ready.
Banking fraud can happen to anyone. Criminals often use pressure, confusion or a sense of urgency to make a payment request, call or message feel genuine.
Here, the Fraud team at Hampden Bank shares practical guidance on the main types of banking fraud, the signs to look out for, and what to do if something doesn’t feel right.
What is banking fraud?
Banking fraud is when someone uses your personal, card or account information to take money, access your account, or trick you into making a payment.
It can include payments you did not authorise, card transactions you do not recognise, or situations where you are persuaded to move money yourself because the request appears genuine.
Common types of banking fraud
Authorised Push Payment fraud
Authorised Push Payment fraud, often called APP fraud, is when a criminal tricks you into sending money to an account they control. You may believe you are paying a genuine person, business or organisation, but the money is going to a fraudster.
Signs of APP fraud:
- A request to pay a new account for something you thought was already agreed.
- A payment that feels urgent or unusually confidential.
- A caller, email, or message asking you to ignore normal checks before sending money.
- A message which uses authority to gain your trust. E.g. a caller or message claiming to be from a trusted organisation such as the police, your bank’s Fraud Team or HMRC (His Majesty’s Revenue & Customs).
If you’ve been tricked into sending money by bank transfer within the UK, your bank must reimburse you in most cases. This has been a legal requirement since 7 October 2024 and covers losses of up to £85,000.*
*You need to report the scam to your bank within 13 months of the last payment. Your bank may only refuse if it can show you acted with gross negligence, meaning you ignored clear warnings in a significant way. That exception doesn’t apply if you were vulnerable at the time.
Safe account scams
In a safe account scam, someone pretends your money is at risk and tells you to move it to another account to protect it. The account they give you is controlled by the criminal.
Your bank will not ask you to move money to a “safe” account. If someone tells you to do this, stop and contact your bank using a number you already know is genuine.
Courier fraud
Courier fraud usually starts with a phone call. The caller may pretend to be from your bank, the police or another trusted organisation. They may say there is a problem with your card or account, then send someone to collect your card, PIN, cash or valuables.
Neither your bank nor the police will send a courier to collect your card, cash or valuables, and they will never ask for your PIN.
Invoice and mandate fraud
Invoice and mandate fraud happens when criminals persuade someone to pay an invoice into the wrong account or change existing payment details. It can affect individuals, households and businesses.
Signs of invoice and mandate fraud:
- A supplier or contact says their bank details have changed.
- The email address looks almost, but not quite, the same as usual.
- You are asked to make a payment quickly, outside the normal process.
- The invoice amount, timing, or account details do not match what you expected.
Before you change payment details or send money to a new account, check using a trusted phone number or contact route. Do not rely on the details in the message you received.
Card-not-present fraud
Card-not-present fraud is when your card details are used without the physical card being present, often online or over the phone. It may show as a payment, subscription or small test transaction on your statement that you do not recognise.
If you spot a card payment you did not make, contact your bank as soon as possible. They can help secure your card and review the transaction.
Account takeover and unauthorised payments
Account takeover is when a criminal gains access to your account or banking details. You may notice a payment you do not recognise, a new payee you did not set up, a login from an unfamiliar device, or a security alert you were not expecting.
If you see anything unusual, contact your bank straight away using a trusted route. Do not approve a payment, share a one-time passcode or confirm a change unless you are sure the request is genuine.
Warning signs in your banking activity
Some warning signs are easy to miss. Take extra care if a message, call or payment request feels rushed, unusual or secretive. Check carefully if bank details have changed, a payment has been set up without your knowledge, a card transaction looks unfamiliar, or you are asked to approve a login or payment you did not start.
If something feels wrong, pause before you act. Contact your bank using a trusted route, such as the number on your card, bank statement or banking app.
What to do if you are worried
If you think you may have been targeted by fraud, act quickly. Contact your bank, explain what has happened, and follow their guidance. Do not use contact details from a suspicious message or caller.
If you are a customer of a high street bank, call 159 to reach your bank safely. 159 is a free, memorable number that connects you to your bank’s genuine fraud line. It works with most major UK banks and building societies. If someone calls claiming to be your bank, hang up and dial 159 yourself. If you can, use a different phone, or wait a few minutes before calling.
Report it to the police:
- England, Wales and Northern Ireland: contact Report Fraud at reportfraud.police.uk or call 0300 123 2040.
- Scotland: call Police Scotland on 101.
Key steps you can take to protect yourself from banking fraud
- Only share personal, card or account details with organisations you trust and have chosen to deal with.
- Contact your bank straight away if you see transactions on your statement that you do not recognise.
- Be careful with unexpected pop-ups online, especially if they ask you to click a link, enter details or call a number.
- Question any approach you were not expecting. If you are unsure, contact the company directly using details you know are genuine.
- Remember that knowing some of your personal information does not prove someone is genuine.
- Check what online banking security options your bank offers and use them where you can.