Courier fraud is a rising threat in the UK, with fraudsters targeting older individuals by impersonating trusted institutions, such as banks or police. HSBC has issued an urgent warning to its customers about a new scam involving high-value gold purchases. With fraudsters using highly manipulative methods to exploit victims, understanding how to identify and avoid this scam could save thousands.
Many people targeted by this scam lose vast sums. With some cases leading to hundreds of thousands of pounds in losses. According to HSBC, elderly and vulnerable customers are particularly at risk, with some experiencing devastating financial and emotional consequences.
A Growing Threat
HSBC recently revealed that a disturbing number of their older customers have been tricked by fraudsters posing as bank officials or law enforcement. These fraudsters lure their victims with tales of “internal fraud investigations” or “urgent police operations,” manipulating them into making substantial cash withdrawals or purchasing gold. The victims are then instructed to hand over these assets to supposed “couriers” for “safekeeping.” Still, in reality, these items go directly to the fraudsters.
HSBC has taken steps to combat this trend by directly reaching out to customers. Nearly two million emails have been sent out to warn individuals about the dangers of this gold-buying scam. HSBC’s primary focus has been on customers over 65, as this age group is the most frequently victimised by these types of impersonation scams.
How Does the Scam Work?
Fraudsters contact their target, often posing as representatives from trusted organisations like HSBC, the police, or other official bodies. They then spin a fabricated story, convincing the victim that their financial assets are at risk due to an internal fraud case or that their help is needed in a police investigation. This narrative often evolves into the following sequence:
- Request to Purchase Gold: The fraudsters advise victims to buy gold from recognised retailers, claiming it will serve as “evidence” in a supposed case.
- Deceptive Courier Pickup: Once the victim has bought the gold, the fraudsters arrange for a courier to collect it. This “courier” pretends the gold will be stored securely or transported as part of an investigation.
- Coaching the Victim: To avoid suspicion, fraudsters often coach victims on what to say if questioned by bank staff or retail employees. Victims may be instructed to claim the purchase is for an investment or a gift.
Gold Prices and Investment Scams
Rising gold prices have made these assets particularly attractive to fraudsters. With current economic instability and global uncertainties, gold has surged in value, and fraudsters are exploiting this trend. HSBC UK observed a sharp increase in fraudulent activities between July and September of 2024. In the third quarter alone, HSBC recorded the highest number of investment scam cases. With double the cases reported in September 2024 compared to the same month last year.
On average, investment scams lead to individual losses of around £33,739, adding up to millions lost overall. Furthermore, courier fraud cases have also surged, with average losses of £20,772 per case in the third quarter.
More than Gold
HSBC also reports a disturbing trend in other types of fraud. Romance scams hit a yearly high in the third quarter, costing victims an average of £31,000 each. Purchase scams, where fraudsters convince victims to pay for non-existent products or services, saw peak activity in September 2024.
David Callington, head of fraud at HSBC UK, emphasises that fraud prevention should be a year-round priority. “Fraudsters aren’t sticking to a season. Romance scams, purchase scams, and investment scams happen all year long. Fraudsters are relentlessly working to steal people’s hard-earned money,” he says.
New Reimbursement Rules
In response, new regulations introduced in October require banks to reimburse victims, unless gross negligence is involved. Under these rules, victims of bank transfer fraud can claim compensation of up to £85,000, with some banks offering to reimburse higher amounts in exceptional cases.
According to industry body UK Finance, online sources drive 76% of APP fraud, showing that fraud prevention efforts must focus on improving digital security. This reimbursement policy, overseen by the Payment Systems Regulator (PSR), aims to provide much-needed relief for victims and a safety net as they attempt to recover their losses.
Tips for Fraud Prevention
While banks and regulators continue their fight against fraud, there are steps individuals can take to protect themselves from courier fraud and similar scams:
- Verify All Contacts: Never assume that a call or message claiming to be from a bank or the police is legitimate. Hang up, look up the official number, and call back independently.
- Avoid Unusual Requests: Legitimate organisations will not ask you to buy gold or hand over cash to a third party for safekeeping.
- Stay Informed: Regularly check your bank’s fraud awareness updates and alerts. Banks like HSBC often issue warnings to protect their customers.
- Be Wary of Online Contacts: Since three-quarters of APP scams stem from online interactions, treat online messages and calls with caution, especially from unknown sources.
Staying Ahead of Fraudsters
Courier fraud can be alarmingly sophisticated, with fraudsters often appearing highly credible. However, the most effective ways to protect yourself are surprisingly simple. If something feels off or sounds unusual, don’t let pressure push you into quick decisions. Fraudsters rely on creating urgency, making you feel that immediate action is necessary to “protect” your money or secure your account.
In these moments, staying calm is critical. Although it’s natural to feel worried about your money, especially if you’re told it’s at risk, remember that this urgency is likely a manipulation tactic. Fraudsters want you to feel anxious so you won’t have time to think.
Instead, take a moment, pause, and make your own inquiries. Hang up, look up the contact details of the organisation in question, and call them directly. Trusting your instincts is often your best defence. If something feels wrong, there’s usually a reason. Taking a step back to verify the situation can be the key to protecting yourself from fraud.
