Fraudsters are continuously adapting their approaches and using new technology in an attempt to be successful.
But what is unauthorised fraud and why is it so common? We’ll take you through what it is, some red flags to look out for, how to prevent it, and what you can do if it happens to you.
What is unauthorised fraud?
Unauthorised fraud is when a transaction is made, which is not authorised by the account holder. This can happen as a result of account takeover by fraudsters, or through compromised card details. It is often preceded by social engineering, convincing the account holder that they are protecting their funds.
What could unauthorised fraud look like – a real example?
A fraudster impersonated the business owner's bank, claiming suspicious activity had been detected on the account. The business owner was told their funds were at risk and needed to be transferred to "safe" or "secure" accounts while the bank investigated.
Trusting the caller, the business owner was persuaded to install remote access software, authorise new payee set ups and authorise multiple Faster Payments. Although the in app notifications stated that the approvals were for new payees and payments, the business owner was persuaded to ignore this messaging by the fraudster.
The business owner believed the money would be returned once the investigation was complete, but the funds were instead transferred to accounts controlled by criminals. The business lost £150,568.21 across 10 Faster Payments.
Red flags to look out for
Unexpected communication about your accounts can be a sign of fraud. Look out for:
- Calls claiming to be from Allica Bank.
- Unrequested password reset emails.
- Logins from unfamiliar devices, times or locations.
- Someone asking for your PIN, password, passcode or one-time password.
- Being asked to approve a ‘refund’ or approve a payment to a ‘safe’ account.
- Being asked to navigate to a specific website, download software or share your screen.
- Someone trying to stop you hanging up or checking their request independently.
- Pressure to act quickly.
If you have been a victim of fraud, contact your bank straight away. The sooner you act, the better the chance of limiting your loss, although there’s no guarantee that money lost to fraud can be recovered.
Protect your business
If someone asks you to give them access to your account, or share a security code, stop. Your bank will never ask you to do this.
Allica will never ask you to download software, share your screen, cancel a payment, approve a payment, or move money due to fraud. Instead, we’re able to block cards or freeze accounts on your behalf without asking for security codes or access.
Don't ignore the warnings messages on your banking app, especially if someone is pressuring you. Instead, pause, hang up, and call Allica Bank on a trusted number to check if the request is trustworthy.
The right processes, and a few extra minutes, can protect your business from fraud.
Know what to do next
Spotting the signs early is the first step. You can read more about how to protect your business from unauthorised fraud here:
Worried about fraud?
Visit our Fraud Centre for immediate help and further advice.
