Growth in number and value of scams in Q3 identified by HSBC UK

HSBC UK has identified a significant uptick in activity by scammers in the third quarter of 2024, between July and September, according to new insight released by the bank.

With activity from scammers across a number of different scam techniques increasing and hitting a yearly peak, HSBC UK is warning consumers to be on their guard when people ask for money and to take note of warnings issued by their bank alongside warnings that are given when making payments.

Most recently HSBC UK has warned against fake car parking charges and PIN-retry scams. This follows previous warnings on ‘Call diversion scams’, unwittingly becoming a money mule, a scam targeting international students, often those from China, and ticket fraud when buying event tickets from an unauthorised seller.

While the bank regularly updates its Latest Scams web page, the bank will also shortly be reaching out to certain customers to highlight a worrying trend where scammers target older customers, asking them for help with a fake Police investigation which leads to the customer withdrawing cash, buying gold and handing the bullion to the scammers under the pretence it is for safe-keeping and will be returned. It can end up with customers losing hundreds of thousands of pounds.

The scam activity identified in the third quarter (July, August and September) of this year include:

• Investment scams, where you are contacted with investment opportunities offering high returns to draw you in: Q3 showed the highest number and value of cases over the past year, with September having the greatest number of cases – twice as many as in September 2023. The value of cases has reached a peak in Q3 with the average value of an investment scam coming in at £33,739 compared with £18,123 in Q4 2023.
• Police / bank impersonation scams, where someone is conned into thinking they are speaking to the Police or their bank and encouraged to move money into a ‘safe account’ or help with an undercover investigation: Q3 had both the highest overall number of quarterly cases and the highest average value of cases. September had the most cases in any month, while August saw scammers receive most money. Overall the average cost of an impersonation scam in Q3 (£20,772) was almost twice the average case value in Q4 2023 (£11,804).https://about-uk-ca01.gwe.pws.internal.hsbc/news-and-media/growth-in-number-and-value-of-scams-in-q3-identified-by-hsbc-uk
• Romance scams, where a scammer convinces their victim they are in a relationship and starts requesting money once an emotional connection is present: Q3 saw the most romance scam cases in the last year, with August seeing the most cases in any one month. The price of love can be tens of thousands of pounds. Overall in Q3, an average romance scam saw scammers pocket over £31,000.
• Purchase scams, when you’re paying for an item or service which doesn’t arrive, or you don’t receive the service, and your money is lost: Q3 saw the most cases where a customer was scammed through a purchase of a product or a service alongside the highest cost per case, increasing to over £850 in Q3 from a quarterly low of £680 in Q2. September shows the most monthly purchase scam activity in the last 12 months.

David Callington, HSBC UK’s Head of Fraud, said: “During the last quarter we saw a general increase across the board in scam activity, with a number at their highest level in the last 12 months.“

“One thing is very clear: It is not a case of romance scams happening around Valentine’s Day, purchase scams happening on Black Friday or investment scams happening around ISA season in March, all different types of scams are happening throughout the year, and scam activity looks to be on the rise.“

“Scammers are using every trick in the book to hoodwink people to steal their hard-earned cash. Whether it is persuading someone to empty their account, buy and handover gold for safekeeping as part of a fake undercover Police sting, or proclaiming undying love then asking for tens of thousands of pounds to help fulfil an engineering contract in Dubai, any unexpected or unusual request around money should raise red flags.“

“Having a general awareness of the different types of scams will help people protect themselves and their friends and family from falling prey to a scammer, especially those emanating from online sources, which make up three quarters of all APP scam losses.”