This updated guide describes the main bank fraud schemes in use today: cheque fraud and mule accounts, ATM skimming/trapping and counterfeit ATMs (including EMV shimming), insider and identity fraud, and authorized push payment (APP) scams. It explains how these scams work and gives practical prevention steps: refuse unsolicited deposit offers, protect your card and PIN, use multi-factor authentication, monitor accounts, and report suspicious activity to your bank promptly.

Bank fraud today

Bank fraud remains a common form of financial crime. Scammers use a mix of old tricks and new technology to steal money and personal data. The mix of techniques has shifted since the mid-2000s: cheque (check) scams still occur, but card skimming, EMV "shimming," insider theft, account takeover, and authorized push payment (APP) scams are now prominent.

> Note: historical UK figures cited in older guides vary; current prevalence and trends should be checked with national fraud reports.

Common fraud types

Cheque (check) fraud and mule accounts

One longstanding scheme asks a victim to accept a large deposit into their account and share the proceeds. Criminals deposit stolen or counterfeit checks; when the bank later discovers the items are fraudulent, it reverses the deposit and seeks repayment from the account holder. Banks may provisionally credit an account and then recover funds once a check fails to clear. Because check use has declined in many countries, this scam is less common than it once was but still used in organized fraud networks.

ATM fraud: skimming, trapping and fake machines

Crooks attach skimming devices to card slots to copy magnetic-stripe data, hide cameras to capture PINs, or install card-trapping devices that retain cards for later retrieval. EMV chip technology reduced simple skimming, but attackers now use "shimming" devices to capture chip data in some cases. Criminals also deploy counterfeit ATM units in remote locations that steal cards and PINs.

Identity fraud and insider abuse

Insiders with access to account data can copy or sell customer details. More broadly, identity fraud includes phishing, data-breach-driven account takeover, and synthetic identity schemes where fraudsters combine real and fake data to open or control accounts.

Authorized push payment (APP) scams

In APP scams, victims are persuaded to transfer funds to fraudsters' accounts - for example, by impersonation, fake invoices, or romance scams. Because the victim initiates the transfer, blocking and recovery are more complex than for card fraud.

How to protect yourself

  • Never accept unsolicited offers to receive money into your account or to launder funds for someone else. Decline and report them.
  • Protect your card and PIN: cover the keypad, inspect ATMs for tampering, and use bank ATMs in well-lit, busy locations.
  • Monitor accounts and set alerts for transactions. Report suspicious activity to your bank immediately.
  • Use strong, unique passwords and enable multi-factor authentication (MFA) for online banking.
  • Be cautious with emails, calls, and texts asking for credentials or asking you to move money. Verify requests through known bank contact channels.
Banks, regulators, and consumer groups publish guidance and reporting procedures. If you suspect fraud, contact your bank and local fraud-reporting authority as soon as possible.
  1. Update current UK (or country-specific) prevalence and statistics for bank fraud victims and trends.
  2. Verify latest data on cheque usage decline and incidence of cheque-related scams.
  3. Confirm up-to-date information on EMV shimming prevalence and recent ATM skimming techniques.
  4. Check current rules and typical bank liability/reimbursement practices for fraud victims in target jurisdiction.

FAQs about Bank Fraud

What should I do if I discover an unauthorised transaction?
Contact your bank immediately to freeze or block the affected card or account. Follow the bank's fraud reporting procedures and keep a record of communications. Early reporting improves the chance of recovery.
How can I spot an ATM skimmer or fake machine?
Check for loose or unusual parts around the card slot, keypad, and screen. Cover the keypad when entering your PIN. Prefer ATMs in banks or well-lit areas, and use contactless withdrawals when available.
Is it ever safe to accept a large deposit from someone I don’t know?
No. Accepting unexplained deposits can make you liable for funds reversed later and may be a sign you're being used as a "money mule." Refuse such offers and report them to your bank and local authorities.
What is an APP scam and why is it dangerous?
An authorized push payment (APP) scam involves tricking a victim into making a legitimate bank transfer to a fraudster's account. Because the customer authorizes the payment, recovering funds is harder than with card fraud, so verification before sending money is critical.
How do insiders contribute to bank fraud and how can I protect my data?
Insiders with system access may misuse or sell customer information. Protect yourself by limiting personal data shared, enabling account alerts, using strong credentials, and reporting suspicious bank communications through official channels.

News about Bank Fraud

Joseph Mason convicted of bank fraud for stealing £25k - BBC [Visit Site | Read More]

Banking fraud - The House of Commons Library [Visit Site | Read More]

How can data-sharing help to spot scammers and prevent online fraud? - lloydsbankinggroup.com [Visit Site | Read More]

The 73-year-old ‘fake heiress defrauding banks out of millions’ - The Times [Visit Site | Read More]

Tech Support Scammers Stole $85,000 From Him. His Bank Declined to Refund Him. - The New York Times [Visit Site | Read More]

Police step up warnings on phone fraud ahead of Christmas - Cumbria Police [Visit Site | Read More]

Four in Five Brits Expect Bank Fraud and Cyber-Attacks to Become a Bigger Issue by 2030 – the Highest in Europe - Financial IT [Visit Site | Read More]