WhatsApp scam warning as victims lose £1,610 on average

There has been an explosion of WhatsApp and messaging related scams this year, according to a major high street bank.

Victims lose an average of £1,610 to fraudsters who impersonate corporations or use emotional connections, such as pretending to be a family member in need, to steal money.

The rise in messaging scams was first flagged by Lloyds Bank in January but new data shows the alarming rise in the trend, prompting another warning to for people to be on their guard.

It appears criminals are changing their tact when it comes to stealing money. A common scam previously was to impersonate HMRC as a way to cheat people out of their money. 

But incidents of these scams have fallen 85 per cent in the first half of the year, which Lloyds says illustrates how quickly criminals adapt their methods to now exploit emotional connections.

Messaging scams have been reported to Action Fraud 1,235 times between 3 February and 21 June this year and has cost people a total of £1.5million.

In February, This is Money reported Moira Spearman’s story. Moira 71, didn’t suspect anything unusual when she received a text message from an unknown number, claiming to be her daughter having broken her mobile. 

At the time, Moira had never heard of the so-called ‘Mum and Dad’ scam. 

She transferred £719 to a bank account thinking it would be used by her daughter to pay bills. 

It was only when the scammer asked for a second payment of £820 that she realised she had been tricked.

Barclays were able to repay her the money within three days but others may not have the same positive result.

Liz Ziegler, fraud prevention director at Lloyds Bank, said: ‘Fraudsters will stop at nothing to deceive victims and steal their hard-earned cash. 

‘The emergence of the WhatsApp scam over the last year shows just how quickly these ruthless organised crime gangs will adapt their tactics if they think they can make more money doing something different.

‘It’s important that people are aware of the warning signs and how to stay safe. 

‘Never trust a message from an unknown number – even if someone tells you they’ve lost their phone, call the original number you have stored to check.

‘Fraud is now the UK’s most common crime and banks can’t fight it alone, so stopping scams needs to be a shared responsibility. 

‘It is vital that government, law enforcement, big tech and social media companies all play their part to tackle the ruthless networks perpetrating these crimes’.

How the WhatsApp scam works

• Although it may seem like a very personal and targeted scam, typically fraudsters will send the same initial message to lots of different phone numbers at the same time, in the hope that they get a few replies. .
• Once someone has responded, the scammer will use the pretence of being a family member, usually a son or daughter, who has lost their phone and got a replacement.
• This gives them an excuse for having a different phone number, and means they don’t need to know someone’s name, just ‘Mum’ or ‘Dad’ can be enough.
• The story they tell can vary, but most often they will claim that because it is a new phone, they don’t have access to their internet or mobile banking account, and therefore they need urgent help to pay a bill.
• Victims will then be tricked into sending money by bank transfer to an account controlled by the fraudster.
• This type of scam is not limited to WhatsApp, it can also happen via other social media channels.

A WhatsApp spokesperson said: ‘WhatsApp protects our users’ personal messages with end-to-end encryption, but just like on SMS, if someone has your phone number they can contact you.

‘We advise WhatsApp users to block and report suspicious messages, turn on two step verification for extra security and never click on links or share personal details with someone you do not know. 

‘We ban fraudulent accounts from WhatsApp and launched the STOP.THINK.CALL campaign last year in partnership with National Trading Standards and Citizens Advice to raise awareness of how people can stay safe.’

Lloyds has issues guidance on what to look out for in order to avoid being scammed. 

How to stay safe

• Be wary of any messages you receive from numbers which aren’t already stored in your contacts, even if it appears to be from someone you know.
• Don’t be rushed into anything – first of all contact the person on the number you already have stored in your contacts to check if the story is true.
• If you can’t get hold of them, you can verify the identity of the person sending the message by insisting you speak to them before transferring any money.
• Remember if it is a genuine family member or friend, they won’t mind you taking these steps to stay safe.