Credit
Fraud, scams and getting money back
The tactics are consistent, the protections vary by payment method, and speed determines whether money is recoverable.
Fraud has become one of the most common crimes in many countries, and the methods rely on psychology rather than technology.
The common types
Recognisable patterns.
Authorised push payment fraud, where the victim is persuaded to transfer money themselves — including impersonation of banks, police, tax authorities and utility companies.
This is the most damaging category because the payment is authorised, which historically made recovery difficult.
Invoice and mandate fraud, where payment details are altered — common in house purchases, where solicitors' account details are intercepted and enormous sums are lost.
Investment fraud, including cryptocurrency, offering returns that do not exist.
Romance fraud, built over months, with requests for money arriving after a relationship is established.
Purchase fraud, where goods paid for do not exist.
Card fraud, where details are used without authorisation.
Identity theft, where accounts are opened in your name.
And recovery fraud, targeting previous victims with offers to recover their losses for a fee.
The tactics they all use
Which is how to recognise them regardless of the story.
Urgency — a deadline, a threat, an opportunity closing.
Authority — impersonating an institution you would not question.
Isolation — telling you not to discuss it with anyone, including bank staff, frequently framed as a confidential investigation.
Fear or excitement, both of which impair judgement.
And a request to move money to a safe account, which no legitimate organisation ever makes.
Any of these should stop the transaction.
The protections by payment method
Which differ substantially.
Credit cards generally offer the strongest protection, with joint liability provisions in some jurisdictions making the issuer liable alongside the retailer for goods and services above a threshold.
Debit cards offer chargeback, which is a scheme rule rather than a legal right and which has time limits.
Bank transfers historically offered least, though reimbursement rules for authorised push payment fraud have been introduced or strengthened in several jurisdictions, requiring banks to reimburse victims in defined circumstances.
Cash, cryptocurrency and money transfer services offer essentially none, which is why fraudsters prefer them.
Which means the payment method is itself a warning signal.
What to do immediately
Speed is the main determinant of recovery.
Contact your bank immediately, which may be able to stop or recall a payment if it has not been moved on.
Use the number on your card or bank statement rather than any number provided by the caller.
Report to the national fraud reporting body, which most countries have.
Report to the police where relevant.
Change passwords and enable two-factor authentication.
Check credit files for accounts opened in your name.
Consider protective registration for identity fraud.
And keep records of everything — times, names, reference numbers — since claims depend on evidence.
Claiming reimbursement
The process.
Report to your bank and make a formal claim.
Provide a full account of what happened, including the communications.
Where reimbursement rules apply, banks assess whether the customer met a standard of caution, which is the point of dispute in most refused claims.
If refused, complain formally and escalate to the financial ombudsman or equivalent, which is free and which overturns a meaningful proportion of decisions.
Do not pay anyone who offers to recover your money for a fee, since this is itself a common follow-up fraud.
Prevention that works
Practical habits.
Never act on an incoming call, message or email requesting payment or details — hang up and call back on a number you have independently obtained.
Verify payment details for large transfers by phone using a number obtained separately, particularly for house purchases.
Use a credit card for large purchases where protections apply.
Enable two-factor authentication everywhere.
Use unique passwords with a password manager.
Be sceptical of any investment offering high returns with low risk, and check whether the firm is authorised by your financial regulator.
Freeze or lock cards when not in use, which many apps allow.
And discuss anything unexpected with someone before acting, since isolation is the tactic that makes the rest work.
Protecting older relatives
Where losses are frequently largest.
Fraudsters target older people disproportionately, particularly through impersonation of banks and police.
What helps: agreeing in advance that no one in the family will ever ask for money by message; registering with call-blocking services; setting up trusted contact arrangements with banks, which several offer; and talking about specific current scams, since awareness of the pattern is protective.
And responding without blame if it happens, since shame prevents reporting and reporting is what enables recovery.
General information only, not financial or legal advice. Report fraud to your bank immediately and to your national fraud reporting body, and never pay a fee to recover money.
