What does a bank transfer scam look like?
When a scammer tricks you into sending money to them, this is a bank transfer scam. It is also known as an Authorised Push Payment (APP) scam. This is the term we will refer to and use to describe this type of scam.
Whether you’re shopping for gifts or a New Year bargain, APP scams when shopping online increase around the festive season.
UK Finance reported that £459.7m was lost to APP fraud in 2023.
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Step 1: A too good to be true item is listed on an online marketplace
The festive season is approaching. The scammer knows people will be looking for bargains and gifts for loved ones. They create a listing on a popular online marketplace for a brand new phone. There are lots of photos and the phone is at a great price, much lower than elsewhere. The seller has a lot of good reviews too.
Always be cautious if an item is being sold at a much lower price than normal. Photos on product listings can easily be taken from somewhere else and scammers can use tools to generate hundreds of fake reviews.
Step 2: You have a friendly conversation with the seller
The bargain deal on the brand new phone catches your eye and you message the seller. They reply to you quickly and answer any questions you have, gaining your trust. The seller seems genuine.
Scammers will often be very friendly as this is how they get you to believe you can trust them. Their stories can be really convincing.
Step 3: The seller suggests moving the conversation to somewhere else
The seller says it’s easier to move the conversation somewhere else. Often this will be over text message or WhatsApp. They tell you the sale will be quicker than sending the money on the online marketplace platform, meaning you can get the phone quicker. It would make a perfect gift, so you agree.
Scammers often move conversations to SMS or WhatsApp to avoid being tracked down on the online marketplace.
Step 4: The seller asks for payment to be made through a bank transfer
The seller tells you that other people are interested in buying the phone, so they will sell it to whoever can send the money to them first. This creates a sense of urgency. They promise that as soon as they get the money from you, they’ll send the phone to you.
You agree and send the money to the seller through a bank transfer.
Look out for sellers creating urgency through rushed or pushy behaviour. This includes telling you ‘other people are interested’. They want you to act fast and without thinking.
Step 5: You try to contact the seller, but they have disappeared
You sent the money to the seller through a bank transfer. You have not heard from them since sending the money and they stop replying to your messages. They delete their profile on the marketplace and there is no trace of them.
You realise you have been scammed.
How to avoid online shopping APP scams
- Be cautious of deals that seem too good to be true – items priced much lower than normal are likely to be a scam.
- Do not send money through a bank transfer when making a purchase to someone you do not know or trust. Use a credit card when making purchases of £100 to £30,000 as this offers Section 75 protection.
- Do not feel pressured by urgency – a genuine person or company would be happy for you check that they are who they say they are.
- Do not rely on caller ID to make sure someone is genuine, as phone numbers and text messages can be faked to appear legitimate.
- Treat unexpected calls, emails and text messages with extra caution. Clicking on links in emails and texts can lead you to fake websites.
Read more about other types of scams
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