Fraud is often a complex mix of social engineering, technical knowledge, and opportunism. That makes it difficult to spot and prevent, but not impossible.
These five tactics are commonly used in fraud and, if you spot them, should be treated as red flags.
Awareness won’t stop fraudsters from trying to target businesses, but it will make it much harder for them to succeed.
1. Building credibility
Nobody is going to blindly trust a stranger who rings up and tells them to move their money somewhere else. We might, however, trust someone who tells us they’re from our bank and can (seemingly) prove it.
If a fraudster has access to information about your business or bank, they can be quite convincing. They could share details like one of your recent transactions, the name of your relationship manager, or a supplier name to show they’re the real deal. The reality is that they can get this kind of information from your digital footprint or data leaks.
It’s human nature to comply with authority figures like the police, your bank, or a senior colleague (e.g. your CEO). If a fraudster can persuade you that they’re one of those figures, you’ll be more likely to follow their instructions without challenge.
They can even give you a sense of being in control, by giving you a call back number to verify their identity or spoofing your bank’s phone number to text you.
Remember to: Press the red button. Hang up and call the person back on a number you already know and trust. For example, use the number on the back of your Allica debit card. Ideally, use a different phone.
2. Exploiting emotion and relationships
As mentioned in the previous section, authority counts for a lot. If an authority figure tells you you’re facing a threat, you’ll be inclined to take it seriously.
Fear is a powerful motivator, which is why fraud attempts tend to dial up the pressure on the target with big threats like:
- “Your money is at risk.”
- “Your account will be closed.”
- “The police will need to investigate you.”
This is designed to make you scared and panicked – because once that happens, you’re more likely to comply with their requests.
At the other end of the scale, fraudsters might also try to get you on side and feeling like you’re working together. Reciprocity – getting you to do a small favour for them (even just confirming your details) – can build a sense of trust and rapport between you both. This can be incredibly dangerous, as it can lead to you lowering your guard and not being as critical as you need to be.
Remember to: Be sceptical about threats and fear. The moment somebody puts the pressure on you in that way, take a step back – hang up, breathe, and call them back on a trusted number.
3. Creating a sense of urgency
This is one of the key tactics fraudsters use and it’s part of so many fraud attempts.
Really simply: the more you rush, the less you think. It’s why we can often forget important things if we’re running late or send messages with typos when we’re busy at work.
It also applies to more serious situations, like when you’re told there’s a problem with your bank account. That’s a time for careful thought, but fraudsters will want you to panic, rush, and not pause to consider the facts.
They might speak quickly, ask you to act immediately (“we need to secure your account now”), tell you about live activity (“the user has just tried to take another payment from your account, I’ve cancelled it”), or give you a deadline (“if we don’t complete this in the next minute, your account will be compromised”).
Remember to: Slow down if you’re told to speed up. Any kind of urgency, introduced on a call you weren’t expecting, is a red flag. A fraudster won’t want you to press the red button and hang up; your real bank will be more than happy for you to take a moment to pause.
We will never ask you to transfer your money to another account in order to keep it safe.
4. Controlling decision-making
While this is one of the more subtle tactics, it can be very effective for fraudsters. The general idea is that, through direct and indirect methods, they can control the decisions you make and limit your autonomy. Examples include:
- Keeping you on the phone, so they can maintain the pressure and stop you from seeking outside help.
- Using unnecessary complexity and jargon, so you feel less able to respond.
- Offering you a false choice, for example “we can move your money to account X or Y – which should we choose?”
- Tricking you into approving something (e.g. “use your biometrics to approve the next request in your app, this will mean you’ve confirmed the transfer is cancelled.”)
This is one more piece of social engineering that disempowers you, giving them the chance to decide for you.
Remember to: Take time and space from the conversation. If they’re trying desperately to keep you on the phone, that should only encourage you to hang up sooner.
5. Taking over with software
Away from social and psychological tactics, there are also some telltale technical signs to watch out for.
Usually, this involves approving a remote access tool to give the fraudster control over your phone or computer. This can be achieved by telling you their software will fix a problem or secure your device.
They can also take over your account by getting you to share a password, one-time passcode, or other multi-factor authentication key. You should never share these security details with anyone.
Remember: we will never ask you to install new software or tell us your security information.
Conclusion
If you notice these tactics in a conversation, take them as a sign to be highly cautious and sceptical.
Our fraud advice always comes back to one key concept: press the red button. When you hang up on a fraudster, you take away their power and give yourself the time and space to think critically about the situation.
Worried about fraud?
Check our fraud centre for more information, quizzes, and guidance to keep your business safe.
