Lloyds Banking Group reported that the average loss from impersonation scams rose by 10% over the past year. The bank noted that while the total number of impersonation scam cases fell by 3%, some types of scams increased. This includes scams that impersonate banks, police, and HM Revenue and Customs (HMRC).
Key Details
In one case, an 85-year-old woman lost £188,000 to a police impersonation scam. Fraudsters tricked her into making several purchases of gold, which someone collected while posing as an undercover officer. Lloyds stated that the average loss from HMRC impersonation scams was £2,288. Victims of broadband and mobile provider scams lost an average of £1,169.
Liz Ziegler, a fraud prevention director at Lloyds, said, "Summer can be an expensive time of year, with many people focused on managing their finances around holidays, family days out and other seasonal costs." She added, "Fraudsters know money is often at the top of people’s minds and use convincing stories about account issues, refunds or urgent payments to pressure people into acting quickly." She stressed the need for vigilance during this time.
Background
The bank continues to urge customers to be careful of unsolicited messages. They advise verifying the identity of anyone asking for personal information. Lloyds is also working to raise awareness about these scams and provide guidance on how to avoid them.
Related coverage: HMRC Sends 81,000 Warning Letters to Crypto Investors, FCA Warns of Risks in Unregulated Investment Services.
The rise in impersonation scams may lead to more scrutiny on financial institutions and their fraud prevention efforts. Investors could pay attention to how banks like Lloyds adjust their strategies to fight rising fraud rates. Look for further updates on Lloyds' fraud prevention initiatives and any regulatory responses to these growing concerns.
Based on reporting by: standard.co.uk