TSB has issued an urgent warning to customers regarding the rising rates of impersonation fraud, with victims losing an average of up to £4,000.
The UK bank reports that impersonation fraud has represented one-third (33%) of its fraud cases since the beginning of the year. TSB characterizes impersonation fraud as an attack in which a criminal pretends to be a company, organization, or individual as part of a scam. In 2021, this type of fraud accounted for over half (52%) of the total value of TSB customer transactions to fraudsters.
Recent industry statistics underscore the ongoing threat of fraud, with over £2 billion in cases reported to Action Fraud in less than a year. Impersonation fraud is a significant contributor to these losses, with reported incidents soaring by more than 300 percent since 2019.
Bank impersonation fraud is a widespread issue across the financial sector, comprising 24 percent of all fraud losses according to UK Finance’s latest fraud data. At TSB, this type of scam constitutes 21 percent of all losses.
In addition to impersonation fraud, TSB has also highlighted concerns about friends and family fraud, which recorded the second highest number of cases overall. This type of fraud results in an average loss of over £1,200 per case, many of which are linked to cost-of-living pressures. Fraudsters often send emotionally manipulative texts or emails requesting financial assistance while pretending to be a relative or friend.
Further data reveals that £6.7 billion in fraud cases have been reported to Action Fraud since April 2019.
Paul Davis, director of fraud prevention at TSB, emphasized the urgency of the situation, stating: “Households are bombarded with scam calls, texts, and emails every day. We’re urging them to remain vigilant about unsolicited contact to prevent falling victim to fraud, especially during a time when the impact would be profoundly felt.”
He added, “We continue to be the only bank that protects customers from fraud losses through our Fraud Refund Guarantee, which is crucial now more than ever for our customers’ well-being.”