People are at increased risk of falling victim to scams involving impersonation as a lack of awareness and concern is leading to rising cases, according to data and new research1 from Nationwide Building Society.
This may not be surprising given there has been a significant increase in Authorised Push Payment (APP) scams across the industry2, with impersonation scams being one of the fastest growing. Cases more than doubled between 2019 and 2020 in the industry and incidents recorded by Britain’s biggest building society increased by nearly 90 per cent in that time, with data this year showing continued growth, albeit at a slower rate. The average loss per case also fell by over 40 per cent in the same period, as the Society maintains its focus on providing information, warnings and guidance to members about the tactics scammers use to encourage people to send money.
According to Nationwide’s poll of 2,000 people, which follows the introduction of the Society’s Scam Checker Service that provides additional protection for members, more than a quarter (26%) of people say they have fallen for scams involving some kind of impersonation3. These scams often involve a person being tricked into making a payment or giving personal and financial details to someone claiming to be from a known or trusted organisation. Ruses often include pretending to be from the police, your bank or building society, utility or telecoms companies or a government body, such as HMRC or the DVLA.
Despite the continuing rise of economic crime, the fear of being targeted is low on the average Brit’s worry list. Just one in ten (10%) worry about being approached by a criminal pretending to be from a trusted organisation. This compares with more than a quarter (28%) who are worried about having their house vandalised or burgled.
The research reveals an element of ‘it wouldn’t happen to me’ when it comes to the prospect of being duped. Close to half (46%) of people don’t think they’d be likely to fall for a scam. However, when pressed, around one in eight (15%) admit to not knowing what an impersonation scam is, with a further 41 per cent saying they only partially understand.
And in a foil to the view that older people are more susceptible to scams, the chances of being targeted appear to reduce with age, possibly indicating scammers are preying on a lack of experience more than other vulnerabilities. The research3 shows 48 per cent of people aged 16 to 24 say they have been conned, compared to 39 per cent of 25 to 34s and just one in ten (10%) of those aged 55 and above. Some 11 per cent of people say they have been targeted on more than one occasion; the poll shows.
While the majority of people have their wits about them, one in five (20%) don’t scan email addresses properly or at all for signs of tampering and two thirds (67%) answer calls from a number they either don’t know or is withheld. Again, more than three quarters (78%) of 16 to 24s admit to picking up unknown calls, compared to 61 per cent of those aged 55 and over.
The research uncovers a small minority who are far too trusting, with one in 50 (2%) admitting they would transfer money to another ‘safe’ account if they were approached by someone claiming to be from their bank or building society, while three per cent would withdraw money if contacted by someone purporting to be from the Police saying they needed it to help them with their investigation.
Nationwide has educational information available online about scams to help people protect themselves. In addition, the Society recently introduced a Scam Checker Service that enables its members to check a payment they are worried about either in branch or by calling a 24/7 freephone number (0800 030 4057). If the payment is given the go ahead and the member is subsequently scammed, Nationwide will fully reimburse the loss.
Talking to members gives them time to stop and think about the risks before completing a payment because Nationwide’s data shows that speaking to members before they make a payment could help identify and stop up to two thirds (65%) of attempted scams each year.
Ed Fisher, Head of Fraud at Nationwide Building Society, said: “People may think it’s surprising that others fall for scams, but the criminals are becoming ever more convincing both in what they say and the technology they use, intercepting emails or spoofing texts to look like they are genuine. It’s one reason why the number of impersonation scams has increased significantly – people who fall for them are not careless. But the key to thwarting the scammers is education and learning as much you can about the tricks they use as well as telling your friends and relatives what to look out for.
“As a mutual, we’re always looking for ways to improve how we look after our members and help them avoid becoming a victim. As well as the information available on our website and guidance on screen when setting up payments digitally, we recently launched our Scam Checker Service to give members the opportunity to speak to us in branch or over the phone via a dedicated number, to check a specific payment with us before making it. If we work together, we believe we can turn this trend back the other way.”
Tips to avoid becoming a victim of an impersonation scam
- With impersonation scams on the rise, if you ever receive a suspicious call, text or email, don’t automatically believe it is who you think, even if it’s purporting to be from a company you know and trust.
- Never act on a call out of the blue or transfer money at a caller’s request. A genuine organisation would never ask you to move money to another account for security reasons. A genuine organisation can resolve issues without you needing to do anything with your money or security credentials.
- Don’t give anyone remote access to your computer following a cold call or random text and don’t allow anyone into or to view your internet banking activity for any reason.
- Don’t be rushed into making a decision or taking action. Take some time to investigate they are who they say they are and that they are a genuine person or organisation. For example, check for any discrepancies in the sender’s email address or caller’s telephone number and contact them back on their registered number so you know you are speaking to them.
- If you have any sort of doubt, hanging up the call or deleting the email is the wisest initial step to take.
- It’s important to share your concerns as well, so immediately call your bank, building society or even the police from a different phone or email them using a trusted email address. Your debit or credit card will always have your bank and building society’s official number on the back.
