Act quickly
Martyn James, a consumer rights expert, says most scams involve getting you to transfer money directly or obtaining enough personal information to access your bank account, or using private details to start a new account under your name – also known as identity fraud.
If you think you have been scammed, call your bank or card provider to report it immediately.
“The bank and credit card companies all say, weirdly, that lots of people do this very British thing where they feel so foolish, they don’t do anything,” says James. “But there is action you can take, and it all depends on reacting as quickly as possible.”
He advises that you call the main customer phoneline for your bank or card provider. “Lots of people call the fraud line, but it [often] has lengthy waiting times. It can be hard to reach your provider this way,” James adds.
Another option is to call 159 – this is a central number that can put you through to one of several big high street banks that have signed up, including HSBC, Lloyds and Barclays.
James says if a large sum is going out in chunks across a period of time, you can halt it. “It is possible a transaction may have been frozen, so even if you have left it for an hour or so, it is still worth reporting it, as your bank may have spotted a pattern and stopped the activity on your account while they work out what is going on.”
Check your banking app
A lot of apps offer the option to freeze a card online, so if you are worried, you can do this and then talk to your bank. “You can also report a stolen card on most banking apps,” says Lisa Webb, a consumer law expert at the consumer group Which?.
It is harder to report fraud itself via a banking app, so you may still have to call a number. “Often, staff on those hotlines are trained to deal with fraud reporting and will know what questions to ask and information to gather,” Webb says. “It’s useful to speak to a human about these things.”
Banks should help
“If it is not an authorised payment, you can tell them this and you should get your money back,” James says.
Webb adds that if you transfer money to a scammer, your bank is the best place to go first “because an awful lot of banks are signed up to” the voluntary contingent reimbursement model code (CRM Code). She says: “They have to reimburse blameless victims of ‘authorised push payment’ (APP) scams.”
She adds: “Unfortunately, we do find that it’s a lottery as to whether a bank reimburses you straight away. It is down to the reference of being blameless, as some banks have a higher threshold.”
Webb says there are other ways to get your money back if you used a credit or debit card to buy something from a scammer.
“If, for example, it’s a credit card, sometimes consumers can rely on section 75 of the Consumer Credit Act and they can get money back,” she says. There are limits, so for example, you need to have spent more than £100 on the card but less than £30,000.
“With a debit card, you can sometimes use a chargeback scheme. This is not enshrined in law, but some banks subscribe to it,” Webb says.
James says you can complain to the Financial Ombudsman Service if you have been scammed and you think your bank did not spot the fraud. He adds that if you have accidentally handed over your banking passcodes, it can sometimes be more difficult, so if you realise this may have happened, check for any unusual transactions.
Check your credit rating
James says the worst and most frustrating situation is when data is scraped and used to commit identity fraud. He adds that this is not very common but, when it does happen, it can be “devastating”.
To avoid this, you should be careful with personal details, especially anything sent over email. For example, people often send themselves copies of their passport with the subject line “passport”.
A scammer who has your email access codes can then get this document relatively easily, and see all of the personal details it contains. “Something practical to do is search for and delete emails like this,” says James.
If you suspect you may have had personal details stolen, you should keep an eye on your credit file using a credit reference agency such as Experian. These agencies have online guides on ID theft, and Citizens Advice also has good information.
“It’s a case of being vigilant and checking credit-rating websites to see what crops up and any debts that you are registered against. A statutory credit report is free,” says James. “If your identity has been stolen, it should be confirmed by those websites. Any financial borrowing or activity along those lines will appear in a credit file linked to you.”
Report fraud to prevent it
Webb says you can report fraud in England, Wales and Northern Ireland to Action Fraud or, if you are in Scotland, to the police.
“If you are dealing with a situation such as purchase fraud – for example, someone is selling something dodgy – you can also go to Trading Standards, which can take enforcement action against retailers,” she says.
Webb says you should never feel embarrassed, though this is quite a common response. “It’s important to talk to payment providers … or even family, as being scammed has a huge psychological impact, and affects people’s ability to trust.”
She advises going to the police and your bank if personal information has been taken in case someone tries to clone your card.
Change your logins
“If you have data stolen or copied, then change all your online passwords – that is key,” Webb says. “If someone gets hold of a few bits of information, they can use it in ways you might not expect.”
