A major bank is warning people to watch out for an impersonation scam involving buying gold and handing it over to criminals for ‘safekeeping’.
HSBC UK has warned of a ‘worrying trend’ where scammers are targeting older and more vulnerable customers.
Fraudsters are asking people for help with fake police investigations which lead to the customer withdrawing cash, buying gold and handing it over to criminals under the pretence that it is for safekeeping and will be returned.
The scam can end up costing customers hundreds of thousands of pounds, the bank said.
It involves criminals posing as the bank, police or another trusted organisation, telling victims they need to protect their money and accounts from internal fraud, or that they need to help with a fraud investigation.
HSBC has warned customers of an impersonation scam, in which fraudsters ask victims to buy gold and hand it to them under the pretence of a police investigation or to ‘protect their money from fraud’ (file photo)
Scammers are targeting customers over 65, as well as vulnerable clients, the bank said (file photo)
The victim is requested to purchase gold from a legitimate merchant and retailer.
They are then told to hand over the gold to the scammer, posing as a courier, who claims it will be used as evidence and transported for safekeeping.
Customers may be coached by criminals to lie to the bank and to answer questions in a certain way. They may be told to say the purchase is for an investment or a gift.
HSBC emphasised that people should take note of scam warnings issued by their bank when making payments.
The bank said it was contacting nearly two million customers by email with its gold scam warning, which will initially be sent to customers over 65, who are the main age group reported to the bank as falling victim to this type of scam, as well as vulnerable customers.
Gold prices have recently been jumping to record highs, amid wider geopolitical worries and falling interest rates.
HSBC said it recorded a significant increase in activity by scammers between July and September.
It said the third quarter of this year saw the highest number of investment scam cases recorded over the past year, with twice as many cases in September 2024 as in the same month last year.
The average amount lost to an investment scam is £33,739, the bank said.
Police and bank impersonation scams have also increased, costing clients an average of £20,772 in the third quarter of 2024.
The third quarter of this year also saw an increase in romance scams, robbing victims of an average of £31,000.
Meanwhile, September 2024 marked the highest purchase scam activity seen by the bank over the past 12 months. The average purchase scam loss in the third quarter of 2024 was more than £850, HSBC said.
Romance scams are also on the increase, the bank warned, and are costing victims an average of £31,000
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.’
He added: ‘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 (authorised push payment) scam losses.’
New rules came into force in October, requiring banks to reimburse victims of bank transfer scams unless the customer has been grossly negligent.
A reimbursement limit of £85,000 has been applied under the rules, overseen by the Payment Systems Regulator (PSR), although banks can choose to go further than this and repay higher amounts.
Three-quarters (76%) of APP fraud cases last year originated from online sources, according to figures previously released by banking and finance industry body UK Finance.
No Comment! Be the first one.