Bucks, Beds and Herts seeing an increase in the amount of scammers pretending to be a family in friend in need
TSB reported an average loss of £1500.
Bucks, Beds and Herts is seeing an increase in the number of scammers pretending to be a member of the family or a friend in need.
"Research from TSB finds that Friends and Family fraud has recently doubled to become the biggest form of impersonation fraud by number of cases.
"Indeed, the scam has spiked by 58% since the same point last year, as fraudsters typically impersonate their targets’ sons and daughters with bogus requests for help paying bills."
"Over the month analysed, TSB reported Friends and Family fraud cases ranging from £50.00 right up to £9,500.00 - with an average loss of £1500.
"Recent cases include a 71-year-old sending £1,700 to a fraudster following an urgent, emotive request claiming to be from his daughter needing money to help with bills.
"A fraudster also stole £50 from a 29-year-old customer after impersonating a close friend and requesting support for energy payments."
We spoke to Paul Davis, Fraud prevention director at TSB, he told us Fraudsters evolve to what is going on in the world in order to trick people and many are focusing on the stress the rising cost of living is causing to target their victims.
And using the Cost of Living crisis to make people believe they are in desperate situations. For example, their electricity going out, unable to pay bills or feed their children.
"This is perfect for fraudsters, it's very topical as a story and it makes people emotionally very worried and potentially let their guard down, and that's exactly what fraudsters thrive off, unfortunately."
TSB conducted a study that showed the impact of being a victim of fraud for those in the East of England would mean 75% would struggle to feed their families for more than a week.
"It's a relatively low-value fraud but it's a big sum of money to UK households. And 3/5ths of people, so 58% told us that they would then struggle to afford food for a week after that.
"So these are life impacting scams potentially life changing scams."
Paul told us if you are a victim of fraud, realising as soon as possible will be the best chance of getting your money back as banks can contact the bank where the money has gone and potentially get them to freeze that money. As scammers take on average £1500.
However, the longer it is left, the less likely you are to see the money be returned. Paul also made us aware that not all banks will refund the money.
"The golden rule I think is if it's a WhatsApp message, or email from a supposed family member, remember, it's good to talk. You know what these people sound like, pick up the phone, talk to them.
"Only when you hear their voice and have verified they need the money and got the bank account details from them that way, should you consider it safe to trust those bank account details."
The average loss we see in these cases is £1500 the amount can vary enormously, it can be as low as £50. We've seen one case attempted that was nearly £10,000
So our research looked at the context of those scams in a relatively small amount of £500, but even that would have a big impact on families to lose."
More information from the study
"£1.6M IS LOST DAILY TO FRAUD OF WHICH £850,000 WON’T BE REFUNDED
"HI MUM! THIS IS MY NEW NUMBER! xo
"When it comes how to connect with victims, WhatsApp is by far the preferred communication route of Friends & Family scammers, accounting for nine in 10 (89%) of all cases analysed.
"Victims typically receive a message from a new number alongside a plausible story on why their number has changed.
"After striking up conversation an emotive request for payment is sent through – made more believable and pressing due to the current economic climate.
"Another fraud to come to the forefront this year is the Advance Fee Fraud.
"This type of fraud has increased by 53%2 in a year to become the third biggest fraud category by volume – with an average loss of £550 per case.
"The scam usually targets some of the most financially vulnerable by persuading victims to pay an upfront fee to access non-existent loans, services, or prizes.
"A recent example includes a 32-year-old who made a payment to a company named "IVA relief,” which claimed to help people with managing their debts.
"After making the down payment of £1,800, he contacted the ‘company’ to find the line dead.
DEVASTATING IMPACT TO HOUSEHOLDS
"Accompanying research shows that the impact on households of a £500 fraud loss has almost doubled in a year.
"Three in five (58%) households now report they would struggle to afford food for over a week after losing up to £500 to fraud, compared to a third (32%) in 2021.
"Additionally, half (50%) of households would not be able to afford a rent or mortgage payment, compared to one in five (22%) this time last year.
"TSB is urging households to remain extra vigilant to potential scams, as £1.6 million is lost to fraud in the UK every day – and with just 47% of losses returned to victims.
"As the Payment Systems Regulator is scheduled to update on the future of fraud reimbursement, TSB emphasises its calls for mandated refunds to all bank customers to protect household finances against rising fraud levels."