Banking scams are becoming increasingly sophisticated. In the UK, thousands of people fall victim to financial fraud each year, losing millions in the process. The good news is that most scams follow patterns you can learn to recognise.
Fake Merchant Charges (Lookalikes)
Fraudsters create fake merchant descriptors or exploit legitimate merchant names to make unauthorised charges appear legitimate. These charges might look like familiar companies but are actually fraudulent.
How to identify it
Charge from a merchant you don't recognise
Name is similar to a company you use (e.g. "AMZN" instead of "AMAZON")
Amount seems unusually high or low
No confirmation email from the company
Timestamp doesn't match your recent activity
Merchant name has unusual characters or extra spacing
Real-world example
Sarah noticed a £49.99 charge labelled "AMZN MKTP UK*AB12CD2E" on her statement. She checked her Amazon account and found no matching order. She contacted Amazon directly (not via any number in the email) and confirmed it was fraudulent.
What to do
Don't click any links in emails about the charge
Log into the company's website directly (type the URL yourself)
Check your account or order history for a matching transaction
If no match found, contact the company via official channels only
Prevention tips
Set up bank notifications for every transaction
Review statements weekly, not monthly
Enable two-factor authentication on all important accounts
Monitor your credit report regularly
Subscription Traps (Hidden Auto-Renewals)
You sign up for a "free trial" that requires a card, then get automatically charged when the trial ends. Some scammers deliberately hide the auto-renewal terms in the small print.
How to identify it
Monthly recurring charge for a service you forgot about
Tom signed up for a 7-day free VPN trial in January. In March he noticed £9.99 charges appearing monthly. The confirmation email was in his spam folder. He cancelled immediately and disputed the recent charges.
What to do
Check your email (including spam) for signup confirmations
Search for the company name online + "cancel subscription"
Find their cancellation page or customer service contact
Cancel the subscription immediately
Prevention tips
Set phone reminders for free trial end dates
Use a separate card for trial signups
Check bank statements weekly
Keep a running list of active subscriptions
Phishing Emails & Fake Websites
Scammers send emails pretending to be your bank or a trusted company, asking you to "verify your details". These emails link to fake websites designed to steal your login credentials.
How to identify it
Email from "your bank" asking for sensitive information
Urgent tone — "Your account will be closed in 24 hours!"
Suspicious sender address (e.g. @gmail.com or with typos)
Link looks correct but the URL is slightly different
Grammar or spelling errors in the message
Requests for passwords or card details (banks never ask this way)
Real-world example
Michelle received an email appearing to be from her bank: "Unusual activity detected. Click here to verify your account." The link looked similar to her bank's website but was actually phishing-site.bank-secure.com. She noticed the odd domain before clicking.
What to do
Do NOT click any links in the email
Go directly to the company's website by typing the URL yourself
Log in and check whether there are any genuine alerts
If no alerts, the email is almost certainly phishing
Delete the email or report it as phishing/spam
If you already clicked, change your password immediately from a trusted device
Monitor your accounts closely for suspicious activity
Prevention tips
Never click email links for sensitive account actions
Always type company URLs directly into your browser
Enable two-factor authentication everywhere
Use a password manager with unique passwords per site
SIM Swap Fraud (Phone Number Hijacking)
Fraudsters trick your mobile provider into transferring your phone number to a new SIM they control. They then use your number to reset bank passwords and take over accounts.
How to identify it
You suddenly lose all mobile signal unexpectedly
SMS two-factor codes stop arriving
Bank login notifications you didn't trigger
Unexpected password reset confirmation emails
Sudden lockouts on important accounts
Real-world example
James noticed his phone had no signal mid-afternoon. He called his provider from a landline and learned someone had requested a SIM swap. By that point fraudsters had already attempted to access his bank account — his authenticator app had prevented it.
What to do
Contact your mobile provider immediately
Confirm they did not authorise a SIM swap
Change all passwords from a different device
Switch to authenticator app 2FA (not SMS-based)
Contact your bank to flag suspicious activity
Monitor your credit report for new applications
Prevention tips
Never share personal information (mother's maiden name etc.) publicly
Ask your provider to add a verbal account PIN or security phrase
Use authenticator apps (not SMS) for two-factor authentication
Consider enabling "Do Not Port" protection with your provider
Overpayment Scams (Fake Refunds)
A scammer sends you money "by mistake" and asks you to refund the extra. The original transaction is fake or later reversed, but you've already sent real money from your account.
How to identify it
Unexpected payment from a stranger or unknown company
Request to return an "overpayment" urgently
Pressure to act before the money "disappears"
Request to repay via bank transfer (which can't be reversed)
Payer cannot provide a proper verification process
Real-world example
Lisa received £500 from a buyer via bank transfer for items she was selling. She sent £300 back for the "overpayment." The original transfer was later reversed as fraudulent. Lisa's account ended up £300 in the negative.
What to do
Don't transfer any money back immediately
Verify the sender is legitimate by calling the company directly
Ask them to reverse the transaction themselves through their bank
If selling privately, ask for a different repayment method
Wait at least 10 working days to confirm the original payment is genuine
Report suspicious incoming payments to your bank
Prevention tips
Never transfer money based on email or message requests alone
Verify senders through official channels before acting
Be sceptical of any "mistake" payments — they are almost always deliberate
Use payment services with buyer and seller protection
Romance & Investment Scams
A scammer builds an online relationship with you then convinces you to invest money in a "business opportunity" or send funds for a sudden "emergency."
How to identify it
Person wants to escalate the relationship unusually quickly
Refuses or finds reasons to avoid meeting in person or video call
Introduces an investment "opportunity" with incredible returns
Claims a sudden emergency requiring money urgently
Asks for payment via bank transfer or gift cards
Their story keeps changing when questioned
Real-world example
Donna met "Michael" on a dating app. After weeks of chatting, he claimed a business emergency and asked for £2,000. She transferred the money. He disappeared and deleted his profile.
What to do
Trust your instincts — if something feels off, it probably is
Never send money to someone you haven't met in person
Verify their identity independently (reverse image search, video call)
Decline any investment opportunities from online connections
Report the profile to the platform immediately
Contact your bank if you've already sent money
Prevention tips
Move slowly with any online relationship
Be sceptical of investment "opportunities" introduced by new contacts
Always meet people in person before building financial trust
Run a reverse image search on any profile photos you're unsure about
Fake Tech Support Scams
A pop-up or email claims your device is infected with malware and directs you to call a number or download software. The "support" actually installs malware or gives scammers remote access to your computer.
How to identify it
Unexpected pop-up claiming "Virus Detected!" or similar
Claims to be from Microsoft, Apple, or a well-known brand
Pop-up cannot be closed normally
Demands immediate action and provides a phone number
Pressure to download "antivirus" or "repair" software
Legitimate companies never contact you this way
Real-world example
Mark saw a pop-up claiming his laptop had a critical virus. Panicking, he called the number provided. The "technician" asked for remote access and installed malware. He lost access to his files and banking information.
What to do
Do NOT call any number displayed in the pop-up
Force-close your browser immediately (Alt+F4 / Force Quit)
Restart your device in Safe Mode
Run a legitimate antivirus scan (Malwarebytes, Windows Defender)
Change all passwords from a separate, trusted device
Monitor your bank accounts for unusual activity
Prevention tips
Close the browser immediately — don't click anything in the pop-up
Keep your operating system and antivirus software up to date
Legitimate tech companies never send unsolicited virus warnings
Only use antivirus software from established, reputable providers
Fake Delivery Notifications
A text or email claims a package delivery failed and asks you to click a link to reschedule. The link is fake and either steals your information or installs malware on your device.
How to identify it
Text from an unknown number claiming a failed delivery
You aren't expecting any packages
Link looks slightly wrong or uses a shortened URL
Urgent tone — "Act now or your parcel will be returned"
Sender is generic (e.g. "DHL Support", "Royal Mail Team")
Grammar or spelling errors in the message
Real-world example
"Emma received a text: 'Your DHL package failed delivery. Reschedule here: bit.ly/dhl-confirm' She wasn't expecting anything. She went directly to DHL's website instead of clicking — there was nothing there. It was a phishing scam."
What to do
Do not click any links in unexpected delivery notifications
Go directly to the carrier's official website (type the URL yourself)
Log in to check whether you have any pending deliveries
If nothing is pending, delete the message
Report the message as spam
Forward suspicious Royal Mail texts to 7726 (SPAM)
Prevention tips
Only trust official carrier apps and websites
Never click shortened URLs from unknown senders
Go directly to the carrier's website to track parcels
Be sceptical of any unexpected delivery notification