Which? warns about ‘dangerous’ scam involving card payments

With a consumer group raising concerns about a “dangerous” scam tricking victims into approving card payments, Dr Rasha Kassem – senior academic and leader of the Fraud Research Group at Aston University – believes more fraud education is needed.

She said: “APP fraud is not new, nor are the techniques criminals use to obtain money from individuals.

“Fraud against individuals has always depended on deception, manipulation, lies and the misrepresentation of facts. What changes are the payment methods and technologies criminals exploit.

“It is therefore unsurprising that many citizens continue to be victimised, particularly when financial services and fraud techniques are increasingly complex.

“In my view, current safeguards do not go far enough. Warning customers to “stop and think” or telling them that a transaction “could be fraud” assumes that people understand what fraud looks like. Many do not.

“Banks should provide simple explanations and relatable examples showing how criminals impersonate trusted organisations, manufacture urgency and manipulate people into authorising transactions.

“Banks should also make greater use of AI and data analytics to understand customers’ normal spending behaviour and identify significant deviations that warrant intervention. Technology should complement, rather than replace, meaningful customer education.

“Reimbursement should also reflect the circumstances surrounding the fraud. Where financial institutions have failed to provide reasonable education, warnings or preventative controls, victims should not automatically bear the financial loss simply because they technically authorised a transaction.

“We also need greater public fraud awareness and more sensitive language. Expressions such as “tricked into”, “fallen for” and “scammed” can imply victim blame and compound the psychological harm experienced by victims.

“Ultimately, effective fraud prevention requires education, intelligent banking controls, public awareness and fair consumer protection. We must understand how criminals manipulate human decision-making and equip citizens with practical knowledge before fraud occurs.”