Impersonation Scams: How Fraudsters Pose as Trusted Organisations to Access Your Bank Account

Impersonation scams are among the most psychologically sophisticated forms of Authorised Push Payment (APP) fraud. These schemes involve criminals posing as trusted organisations or authority figures to manipulate victims into transferring money directly from their bank accounts. By exploiting our inherent trust in institutions like banks, government agencies, and utility companies, these scams create a perfect storm of urgency and authority that bypasses our usual caution.

Understanding the Impersonation-Banking Connection

What makes impersonation scams particularly effective is their exploitation of established trust:

• Authority compliance: People naturally comply with requests from apparent authority figures
• Institutional trust: Most people implicitly trust communications from their bank or government
• Fear response: Threats of negative consequences (arrest, service disconnection, account closure) create panic
• Security illusion: Victims believe they’re actually protecting their money rather than sending it to criminals

Let’s examine the most common types of impersonation scams that rely on bank transfers and how to protect yourself.

Bank and Financial Institution Impersonation

How the Banking Transfer Process Works

1. Initial contact: You receive a call, text, or email claiming to be from your bank’s security team
2. Problem presentation: They claim suspicious activity has been detected on your account
3. Verification manipulation: They ask you to “verify” personal details, often offering some correct information to establish credibility
4. Urgency creation: They warn that your money is at immediate risk of being stolen
5. Safety transfer request: They instruct you to transfer your money to a “safe account” they control

The psychological sophistication is remarkable—victims believe they are working WITH their bank to protect their money, when they’re actually sending it directly to criminals.

Sophisticated Tactics Used

• Number spoofing: Calls appear to come from your bank’s official number
• Transaction knowledge: Scammers often have details of your recent legitimate transactions
• Security theatre: They use banking terminology and security procedures
• Multi-agent approach: Sometimes multiple “staff members” are involved in the call
• Call-back validation: They suggest you hang up and call your bank’s number, but stay on the line and fake the dial tone

Real-World Example

Richard received a call from a ‘security specialist’ pretending to be from Barclays. The “security specialist” explained that suspicious transactions had been attempted on his account. To establish credibility, they correctly referenced his last three legitimate purchases.

The caller explained that internal banking systems had been compromised and Richard needed to move his savings to a new “protected account” while they investigated. Following their instructions, Richard transferred £28,500 from his banking app to what he believed was another Barclays account in his name. In reality, he had sent the money directly to the fraudsters. When he visited his branch the next day to check on the investigation, he discovered the devastating truth.

HMRC and Tax Authority Impersonation

The Tax Scam Payment Chain

1. Official notification: You receive what appears to be an official communication from HMRC
2. Tax issue claims: The message states you have unpaid tax, are under investigation, or are due a refund
3. Consequence emphasis: For unpaid tax, they threaten immediate legal action or arrest
4. Solution presentation: They demand immediate payment to resolve the issue or request personal details for a “refund”
5. Banking app utilisation: You’re directed to make an immediate payment via your banking app

Banking Red Flags

• Requests for taxes to be paid to accounts not ending with HMRC’s official account numbers
• Pressure to pay immediately to avoid escalating penalties
• Instructions to ignore your bank’s fraud warnings
• Directions to describe the payment as something other than a tax payment if questioned

Real-World Example

Angela, a self-employed consultant, received an official-looking email claiming to be from HMRC. It stated she was under investigation for tax fraud for the previous financial year and faced immediate arrest unless she paid £8,750 in “settlement fees.”

The email included official HMRC logos, her tax reference number, and a case officer’s name and badge number. In a panic and fearing criminal charges, Angela made the payment from her First Direct account. Only when she later spoke with her accountant did she discover HMRC would never demand payment this way.

Police and Legal Authority Impersonation

The Law Enforcement Payment Trap

1. Authority contact: You receive a call from someone claiming to be a police officer or legal authority
2. Investigation claims: They state you’re part of a serious investigation or your bank account has been compromised
3. Cooperation request: They ask for your assistance in catching criminals
4. Test transfer instruction: They ask you to transfer money to a “secure” or “monitored” account to help their investigation
5. Banking app execution: Believing you’re helping law enforcement, you make the transfer

Psychological Tactics Used

• Using official-sounding ranks, badge numbers, and case references
• Creating elaborate backstories about criminal investigations
• Appealing to your civic duty to help catch criminals
• Swearing you to secrecy to “protect the investigation”
• Creating fictional “undercover operations” where you play a key role

Real-World Example

Peter received a call from “Detective Inspector Williams” who claimed Peter’s bank account was being used by money launderers. The “officer” provided a badge number and case reference, directing Peter to verify his identity by looking up the police station’s number online.

What Peter didn’t realise was that the fraudster never disconnected the call, so when Peter thought he was dialling the police station, he was actually still speaking to the scammer. The “detective” instructed Peter to transfer £45,000 to a special police-monitored account to protect it and help catch the criminals. Peter believed he was assisting law enforcement until his daughter became suspicious and contacted the real police.

Utility and Service Provider Impersonation

The Service Payment Process

1. Service notification: You receive a call, email, or text appearing to be from a utility or service provider
2. Account problem: They claim your account has payment issues, security concerns, or is due for an upgrade
3. Disconnection threat: For utilities, they threaten immediate disconnection without payment
4. Resolution offer: They provide bank details for immediate payment to resolve the issue
5. Banking app transfer: You make the payment through your banking app to maintain essential services

Common Utility Targets

• Electricity and gas providers
• Water companies
• Telecommunications and internet providers
• Television licensing authorities
• Local council services

Real-World Example

Susan received a call claiming to be from British Gas during a particularly cold January. The caller explained that due to a “payment processing error,” her direct debit had failed for three months, and her gas would be disconnected within 24 hours unless she made an immediate payment.

In a panic about losing heating, Susan transferred £4,850 from her NatWest account to the provided “British Gas recovery account.” She only discovered the scam when she received her regular British Gas bill the following week showing her account was up to date.

Tech Support and Software Impersonation

The Technical Support Banking Scam

1. Alert initiation: You receive a pop-up warning, call, or email claiming to be from Microsoft, Apple, or another tech company
2. Problem fabrication: They claim your device is infected, compromised, or has licensing issues
3. Remote access: They convince you to grant them remote access to your computer
4. Banking manipulation: With access to your computer, they either direct you to make bank transfers or access your banking directly
5. Service fee extraction: They charge “repair fees” or “security subscription” costs via bank transfer

This scam is particularly dangerous as criminals often gain direct access to banking apps and personal information.

Banking Danger Signs

• Being directed to your banking app during what should be a technical support call
• Requests to disable security software or banking authentication steps
• Unexpected remote control of your banking sessions
• Suggestions to make payments for technical services via bank transfer rather than card payment

Real-World Example

George received a call from “Microsoft Security” claiming his computer was sending out malware. The caller directed George to a legitimate-looking website where he was shown countless “infections” on his system.

After granting remote access, the scammer created a frightening visual display of supposed security breaches. They offered to “clean” the system for £3,250, claiming George’s banking information was already compromised. While watching the scammer “work,” George transferred the money from his Lloyds banking app. He later discovered his computer had never been infected, and the alarming visuals were entirely fabricated.

Investment Firm and Financial Advisor Impersonation

The Investment Payment Funnel

1. Professional approach: You’re contacted by someone claiming to be from a legitimate investment firm
2. Credential establishment: They share impressive (but fake) credentials and company information
3. Opportunity presentation: They offer exclusive investment opportunities with attractive returns
4. Account setup: They provide bank details for your investment
5. Banking app utilisation: You transfer funds via your banking app to what you believe is a legitimate investment account

These scams often impersonate well-known financial institutions or create convincing facades of fictional but professional-sounding firms.

Red Flags in the Banking Process

• Pressure to make quick investment decisions “before the opportunity closes”
• Bank details that don’t match the official firm’s information
• Requests to send funds to personal rather than business accounts
• Directions to describe transfers as something other than investments when questioned by your bank

Real-World Example

James was approached by “Alexander Bennett” claiming to represent Goldman Sachs’ private client division. Bennett explained that a special investment opportunity was available for a limited time, offering returns of 15% annually with minimal risk.

After several professional calls and receiving impressive-looking documentation, James transferred £75,000 from his HSBC account to what he believed was a Goldman Sachs investment account. When he later contacted Goldman Sachs directly to check on his investment, he discovered they had no record of him or “Alexander Bennett” and that he had been defrauded.

Delivery Service and Shopping Impersonation

The Delivery Payment Trap

1. Package notification: You receive a text or email about a delivery issue that appears to be from Royal Mail, DPD, or another courier
2. Fee requirement: The message claims you need to pay a small fee for redelivery or customs charges
3. Link provision: You’re directed to a convincing but fake website to make the payment
4. Payment escalation: What starts as a small fee leads to larger banking fraud once payment details are harvested
5. Banking app compromise: Criminals either use your payment details for fraud or direct you to your banking app

While these scams often begin with requests for small amounts, they frequently lead to much larger losses once banking details are compromised.

Real-World Example

Helen received a text appearing to be from DPD stating her package required an additional £2.50 customs fee. The link led to a professional-looking site where she entered her bank details.

What seemed like a minor transaction led to significant fraud. Within hours, scammers had accessed her Nationwide account and transferred £12,300 to multiple accounts. The criminals had used the harvested details to initiate banking transfers rather than simply making card payments.

Government and Council Impersonation

The Government Payment Process

1. Official communication: You receive what appears to be correspondence from a government department or local council
2. Entitlement or penalty: They claim you’re either due a rebate or face penalties for unpaid charges
3. Verification request: You’re asked to provide personal and banking information to process the rebate or pay the penalty
4. Payment direction: For penalties, you’re provided bank details for immediate payment
5. Banking app utilisation: You make the payment through your banking app to avoid escalating fines

Common Department Impersonations

• Local councils (tax rebates or penalties)
• DVLA (vehicle tax or fine issues)
• Department for Work and Pensions (benefit reviews)
• TV Licensing (enforcement actions)
• Home Office (immigration status issues)

Real-World Example

Mohammed received an official-looking email claiming to be from his local council stating he had underpaid his council tax for two years. It threatened court action and additional fines of £250 per day unless he paid the “outstanding balance” of £5,850 within 48 hours.

The email included the council’s logo, his address, and a convincing reference number. Fearing legal consequences, Mohammed transferred the full amount from his Halifax account. He only discovered the fraud when he contacted the council directly about a receipt for his payment.

The Banking System Vulnerability: Why Impersonation Scams Succeed

Impersonation scams exploit several features of modern banking and human psychology:

Faster Payments Technology

• Immediate transfers: The Faster Payments system means money moves instantly to fraudsters
• Irreversibility: Unlike card payments, bank transfers cannot be easily recalled once sent
• Direct access: Banking apps give scammers a direct line to your funds with your unwitting cooperation

Trust in Institutions

• Authority bias: People naturally comply with requests from authority figures
• Brand confidence: Established institutions have built trust over decades that scammers exploit
• Security assumption: People assume communications from banks or government are legitimate and secure

Fear and Urgency

• Time pressure: Creating artificial deadlines prevents careful consideration
• Consequence emphasis: Threats of arrest, disconnection, or financial loss trigger panic responses
• Solution offering: Presenting an immediate way to resolve the threatening situation

How to Protect Yourself When Using Banking Apps

1. Verify independently: Always contact organisations using numbers from official websites, not those provided in the communication
2. End suspicious calls: Hang up and call back on an official number using a different phone if possible
3. Question urgency: Legitimate organisations rarely demand immediate payment under threat
4. Remember bank protocols: Banks will never ask you to transfer money to a “safe account”
5. Use the callback delay: Most banks now implement a time delay for new payees—use this time to reconsider
6. Take banking warnings seriously: Pay close attention to fraud warnings during transfers
7. Check account details: Verify that account information matches official company records
8. Discuss with others: Before making unexpected large transfers, discuss the situation with someone you trust

If You’ve Been Scammed Through Your Banking App

If you’ve fallen victim to an impersonation scam involving bank transfers:

1. Contact your bank immediately: Report the fraud as soon as possible—every minute counts
2. Report to Action Fraud: File an official report with the UK’s national fraud reporting centre
3. Preserve evidence: Save all communications, including call logs, texts, emails, and payment confirmations
4. Check reimbursement eligibility: Under regulations effective October 2024, many APP scam victims have strengthened rights to compensation

How APP Claims Can Help You

At APP Claims, we specialise in helping victims of impersonation APP fraud recover their money, even when banks have initially rejected reimbursement requests:

• Expert case assessment: We’ll evaluate your situation free of charge
• Specialised knowledge: Our team understands the sophisticated mechanisms of impersonation scams
• Bank negotiation: We handle all communications with financial institutions
• Evidence compilation: We build compelling cases that banks cannot dismiss
• Ombudsman escalation: When necessary, we take your case to the Financial Ombudsman Service

All on a No Win, No Fee basis.

Impersonation scams can happen to anyone, regardless of age, education, or financial literacy. If you’ve been victimised, contact APP Claims today to explore your reimbursement options and begin your financial recovery journey.

This information is regularly updated as impersonation scam tactics evolve. Last updated: April 2025.