HSBC scam warning as tactic sees fraudsters stealing ‘thousands’ in ‘new twist’ | Personal Finance | Finance

HSBC UK is warning Britons about a “change in approach” by fraudsters to steal money from unwitting victims.

Gold and silver bullion, as well as purchased jewellery, is now increasingly being used as part of a scam that can lose people “thousands”.

The scammers, who typically use impersonation scam or ‘safe account’ techniques, often pose as police officers suggesting that a fraud has taken place on an account.

The plot also often involves claims that the bank customer has been chosen to help with an investigation into the bank branch, or that branch staff members are part of a scheme to pilfer money from the account and substitute it with counterfeit currency.

The “new twist” sees scammers try to persuade the customer to withdraw large sums of cash from their branch and purchase gold or jewellery. They claim that these items will be kept safe or used as evidence in court. However, the reality is quite the opposite.

David Callington, HSBC UK’s head of fraud, commented: “Scammers are devious criminals who adapt their approach from time to time, trying to stay one step ahead of banks and the Police.

“Over the last couple of months, we may have seen the start of a trend where purchasing and physically handing over gold, silver or jewellery has become part of a scam.

“Whereas scammers previously often used cryptocurrency exchanges to ‘cash out’, moves to tighten payments across the industry have led criminals to go down a different route. While this not only leads to the customer losing money through the scam, as there is a physical element to it with a meeting to carry out the handover, there’s a potential physical risk to the victim as well.

“If you receive a call out of the blue about money, it is very likely to be a scam.”

This warning comes as new insight from HSBC UK shows the bank received an average of 46 cases per month where customers have fallen victim to an impersonation scam, wherein scammers impersonate the police or bank employees. The average case value amounted to nearly £600,000 (£598,692).

While the number of other types of impersonation scams occurs twice as frequently, averaging 95 cases per month, the average case value is significantly lower at £245,000, though still a substantial and life-changing amount.

What to look out for

While the exact details of each scam can vary, they may involve more than one scammer posing as different organisations. According to HSBC, they may tell people:

• They have been a victim of fraud within the bank and shouldn’t trust them
• They are helping a police investigation
• Their money is counterfeit
• They need to buy gold or jewellery to stay safe.

How to stay safe

To help consumers avoid the scam, HSBC said: “Stop and think. If you are asked to buy gold to stay safe, it is a scam. Legitimate fraud investigations will not ask you to do this.

“If someone contacts you or asks you to buy or hand over gold or jewellery, hang up immediately.”

Finally, it added: “If you think you’ve been a victim of fraud, call the number on the back of your HSBC card immediately. You can also make a report to Action Fraud.”