New Payment Set Up? Get in Touch! The Bank Scam Where Your “Bank” Is the Scammer
A new wave of bank impersonation fraud is exploiting one of the most reassuring messages people can receive: an alert apparently coming from their own bank about a payment they did not make.
The scam usually begins with a text saying that a new payment or payee has been set up on the victim’s account. The message warns that the transaction is suspicious and provides a telephone number or asks the recipient to respond.
The crucial trick comes next. Once the victim responds, a fraudster calls pretending to be a member of the bank’s security or fraud team. In some cases, criminals may also claim to be police officers or another trusted authority.
The caller then tells the victim that their account has been compromised and that urgent action is required to protect their money. The apparent solution can involve transferring savings to a supposed “safe account” controlled by the criminals or handing over a debit card.
The messages are designed to create panic. Recent examples have claimed that a large payment has been made to an unfamiliar individual or business. The combination of a high-value transaction, a familiar bank name and an instruction to act immediately is intended to make people react before they stop to verify the message.
There is another sophisticated element: scam messages can sometimes appear in the same conversation thread as genuine messages from a bank. That can make a fraudulent alert look considerably more convincing, even to someone who normally pays close attention to security warnings.
The scale of the financial damage is also significant. Lloyds reported that losses to impersonation scams rose by 10% per victim in the year to the end of June, with the average loss reaching £3,516. Santander said more than £3 million had been stolen from its customers through bank impersonation scams this year, with an average loss of about £6,000.
The scam works because the criminals do not initially need to break into the victim’s bank account. Instead, they manipulate the victim into becoming part of the transaction. Once the victim believes the caller is genuinely trying to stop fraud, they may voluntarily provide information, approve payments or move their own money.
That distinction can be important. Regulators distinguish between unauthorised transactions and payments that victims have been psychologically manipulated into authorising themselves. The Financial Conduct Authority describes the latter as authorised push payment or bank-transfer scams.
Security experts say the safest response is to stop the conversation completely and contact the bank independently. Do not call a number supplied in the suspicious message and do not rely on the caller’s assurances.
Instead, use the telephone number printed on the back of the bank card, a trusted statement, or the bank’s official app or website. The US Federal Trade Commission gives the same fundamental warning: a genuine bank will not require customers to move money to a “safe” account to protect it, and customers should never disclose verification codes to an unexpected caller.
The warning signs are therefore straightforward: an unexpected payment alert, pressure to act immediately, a request to call a number in the message, a caller claiming that your money is under immediate threat, or instructions to transfer funds “for protection.”
The most important rule is simple: if someone claiming to be your bank tells you to move your money to keep it safe, stop. Verify the situation through your bank’s official channels yourself.
