A consumer organisation warns that scammers are increasingly targeting card payments, exploiting gaps in protection as criminals adopt tactics similar to authorised push payment scams, with potential risks for victims seeking refunds.
A consumer group has warned that scammers are increasingly exploiting card payments in ways that can leave victims with weaker protection than many people assume. Which? says criminals are borrowing tactics familiar from authorised push payment scams, in which people are manipulated into sending money directly from their bank accounts, but are now persuading some victims to approve card payments instead.
The warning comes as fraudsters refine a familiar playbook. Which? said one common approach is a cold call from someone claiming to be from a bank’s security team, the police or a regulator. The caller tells the victim their account is under attack and urges them to authorise a payment, move money to a so-called safe account or share one-time passcodes. Mastercard, HSBC and Bank of Scotland have all separately warned that APP scammers rely on urgency, impersonation and trust to push victims into acting against their own interests.
The problem, Which? argues, is that card payments can fall into a grey area. Unauthorised card spending is usually refunded, while victims of APP fraud now have mandatory reimbursement protections in the UK, introduced in October 2024 and generally capped at £85,000. But if a victim authorises a card payment to a genuine company and later discovers the money has been channelled to criminals, recovery may be much harder. In those cases, chargeback or Section 75 may help, but only in certain circumstances such as unauthorised charges, non-delivery, faulty goods or misrepresentation.
Lisa Webb, a consumer law expert at Which?, said the issue should serve as a “critical wake-up call” after years of attention focused on bank-transfer fraud. She said people who suspect they have been targeted should complain to their card provider and, if necessary, take the case to the Financial Ombudsman Service. Patrick Hurley, ombudsman director at the service, said it is seeing hundreds of fraud and scam cases each week and that some consumers may have less recourse when they have been persuaded to use a debit or credit card. The Financial Conduct Authority said it is aware of the scam and is discussing it with the industry, while UK Finance urged people never to share one-time passcodes and to call their bank back using the number on their card if contacted unexpectedly.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
