How scam savvy are you?

1. What’s the difference between fraud and a scam?

The key difference is that a fraud can be with or without participation of the victim, whereas a scam more often involves the manipulation of the victim into doing something, like buying fake goods or sending money to a ‘safe account'.

Typically, with a fraud, victims are completely unaware they have been defrauded until their card stops working, or they notice an unusual debit from their account.

With a scam, the victim is normally caught up in a fake call from their bank, an investment opportunity, or the purchase of goods from a fraudulent or fake seller. With a scam, there is a greater amount of involvement of the victim as the criminals will do their best to get the victim to process the transaction themselves.

2. What are the main types of scams people should be aware of?

Impersonation fraud

This is one of the most common types of scams. It’s when fraudsters send emails and messages impersonating trusted authorities and well-known brands.

Financial services brands are commonly impersonated because criminals can exploit people’s natural concerns for their money, but there’s also been fraud around the NHS, HMRC, parcel delivery firms, social media companies and other familiar organisations. Typically, the emails link to a fake log-in page and ask you to enter your username and password. Criminals will then use this to steal information or try the same password to access other things like your bank account (this is why you should never, ever recycle passwords!).

'Safe account’ scams

Where a criminal contacts you pretending to be from law enforcement (police or national crime agency) or your bank and tells you they are conducting an investigation and need you to move your money – an account which they control. This is usually a ‘safe’ or ‘new’ account, and they would provide you with new account details, which are often held at a different bank.

One-time passcode scams

One-time passcodes are used to confirm your identity or approve a genuine transaction you are trying to make. They are a numerical code, which can only be used one. Fraudsters often call customers, pretending to be from Virgin Money telling them there is a problem with your account and you need to share this code urgently. By sharing this code, you could be giving fraudsters access to your money or your account.

Investment fraud

This is usually done via cloned websites, which are hard to detect and are mirror images of their genuine counterparts. Crypto assets have also featured heavily. These are not a regulated investment product (even in legitimate circumstances) and are flooded with rogue traders and fake crypto exchanges.

Top tip, always check the firm and or individual you are dealing with is authorised and regulated by the  Financial Conduct Authority Link opens in a new window before you do anything. Also, the FCA have a warning list of firms that they know are being fraudulent, check if an investment opportunity could be a scam using the ScamSmart Link opens in a new window tool.

Romance scams

People striking up fraudulent relationships with people through dating websites, Facebook, LinkedIn, even some online scrabble games. They build trust over weeks, or even months. Then they start asking for money. If you’ve watched Tinder Swindler then that’s a prime example of romance fraud!

Purchase scams

Advertised goods or services that don’t exist and a fraudster asking for direct bank transfers via fast payments to secure items. This can range from puppies to cars, holidays, concert or sports tickets and even advances for rental properties.

3. Why has fraud risen so much the past couple of years?

Fraudsters target life events that are happening around the world and focus on these. There was a sharp increase in scams during the pandemic and the cost of living crisis. However, collaborative working across banks, police and other industries has meant the overall volume and values of fraud has decreased by the end of 2023 (down 4% in value and 1% less cases).

However, with the ease, convenience and speed of online shopping, Purchase Scams have risen dramatically (losses up 28% and cases up 34% in 2023 vs 2022). 92% of these scams take place online, so it’s more important than ever to stop, think and check before buying online.

4. How can I spot scams and avoid them?

It’s important to understand that everything, and we mean everything, can be faked. Whether it is websites, text messages, phone numbers or online ads and social media profiles, criminals have the tools to make their copycats look professional. Forming good security habits to keep your information safe is the best way to avoid trouble from the outset:

1. Think twice about any message or call that’s unexpected, especially if it makes worrying claims and asking you to take urgent action.
2. Don’t be afraid to stop a conversation if you feel overwhelmed. Criminals know that if they say someone is stealing from your bank account, for example, it’ll cause panic, which is when people are more susceptible.
3. Don’t click links in emails or texts unless you’re sure they are genuine. Virgin Money’s emails will never link to pages that ask for passwords or account details. It’s a good general rule to go to the site from the search engine if you need to log into an account.

Did you know? You can report scam texts of any kind by forwarding to 7726. This is a national service, which is free of charge, that most phone providers are part of to help ban malicious senders. You can also report scam emails to us by sending it to report.phishing@virginmoney.com.

5. What are some of the cleverest scams you’ve seen recently?

1. Bank Impersonation – Fraudsters know they can instil panic and fear if they call you, pretending to be from your bank and saying there is an issue with your account. We call it the ‘Hot State’, where you don’t make rational decision or question what is being asked of you, especially if you think you might lose money. It’s in our nature to trust, so victims comply with request without taking time to verify the caller is actually from the bank. Fraudsters can sound very convincing, so it can be a difficult one to spot.

2. Multi-stage scams - criminals are exploiting the personal information they get hold of and can link scams together to defraud the same victim multiple times. For example, parcel delivery text message scams are a common scam requesting payment of a few pounds to release a fictitious delivery. The victim then receives a subsequent call claiming to be their bank or law enforcement and requesting them to move their money to another bank to prevent fraud. During this call, the fraudsters will quote the victim’s personal and banking information that was obtained at the previous stage with the parcel delivery scam. The caller seemingly knowing everything about you can make the story appear genuine.

3. Online Purchase Scams – These aren’t the smartest of scams, but they are very easy to fall victim to. Shopping online is so quick and convenient, sometimes all you have to do is click one button to make a purchase. Online shopping has become second nature, so it can be difficult to stop and check the site, advert or retailer is legit before buying.

6. What are some red flags to watch out for?

Watch out for the following red flags:

• Being rushed into doing something.
• Being pressured in to sending money.
• Offers that are just too good to be true with short sale periods or ‘limited stock’.
• Being told that your account is at risk or that you owe tax to HMRC.
• Being offered a guaranteed high returns on an investment.
• Being told that your internet or bank account has been hacked or is at risk.
• Being told to download software so the caller can assist you with a payment, refund or account set-up.
• Being asked to read out codes sent via text message.
• Being given a rationale to disregard scam warnings from your bank.
• Receiving an electronic communication from either a personal or business contact providing a change of account details and requesting payment.

7. What should I do if I think I've been a victim of fraud? What are my rights and where can I go for help?

If you think or suspect you have been the victim of fraud, your absolute first point of contact should be your bank, as they are the only people who can stop any more activity and start the process of recovering your money. If you notice anything unusual about your account or activity, contact your bank immediately using the number on the back of your card.

Following this, you should report the incident to Action Fraud Link opens in a new window. Customers in Scotland should report fraud to Police Scotland on 101.

If you’re a Virgin Money customer, check out our fraud and security Link opens in a new window  to find out how we’re protecting you against fraud, how you can report suspected fraud, and much more. You could also check out our handy guide Link opens in a new window to staying safe.