Account takeover fraud is rampant throughout the business, accounting for 24 percent of all fraud losses according to UK Finance's most recent fraud data since all banks suffer impersonation. It accounts for 21% of all losses at TSB. TSB is one of 12 banks that have joined the 159 service, which allows clients to hang up and check the validity of a call using this phone number. The TSB has also issued a warning regarding Friends and Family fraud, which had the second-highest number of instances overall. It costs more than £1,200 each instance, many of which are cost-of-living-related since scammers write passionate messages or emails requesting financial assistance while acting as a relative or friend.
According to TSB data, account takeover fraud has accounted for 33% of all fraud instances since the beginning of this year. Account takeover fraud is defined as an attack in which a criminal impersonates a firm, business, organization, or individual as a major component of the scam. In 2021, the category contributed more than half (52 percent) of all TSB client transactions to fraudsters in terms of value. New industry data highlights the ever-present threat of fraud, with more than £2 billion in incidents reported to Action Fraud in less than a year. According to the report, account takeover fraud is a major contributor to these losses, with incidents increasing by more than 300 percent since 2019.
"Households are besieged with scam calls, texts, and emails every day - we're advising people to stay skeptical of any unsolicited contact, to avoid falling victim to fraud at a time when the impact would be most felt," said Paul Davis, director of fraud prevention at TSB.
"Through our Fraud Refund Guarantee, we continue to be the only bank to safeguard clients from fraud losses, which is as vital now as it has ever been in our customers' lives."