Santander bank scam: new warning explained - what account holders need to know and how to stay safe online

Santander Bank customers have been issued a new warning about the dangers of online scams which have become increasingly prevalent since the Covid-19 pandemic, with more people than ever shopping online.

But what has Santander said in their latest statement - and what are some of the warning signs to watch out for?

What has Santander said?

Santander has claimed that over 70% of purchase scams start on social media, with the bank reporting that a 61-year-old woman was tricked into transferring multiple payments to someone that she had got to know while gaming online.

The Liverpool Echo reports that the woman went on to transfer around £80,000 to the scammer. She was also instructed to lie about the reasons for her transfers.

Santander revealed that the scam had pushed the woman into great financial trouble. However, the bank was able to refund the woman and referred her to a specialist customer support team to help provide welfare and financial support.

How can banks prevent scams?

Santander has put forward a number of recommendations to help tackle online bank scams. The company believes that banks need to include more consistent data sharing and the mandatory use of confirmation of the payee.

Santander is also pushing for a fraud prevention system to be put in place to let customers know that the name of the person they are paying matches the bank account number when making any bank transfer.

Additionally, the bank has suggested that consideration should be given to higher value payments and transactions and that they should be given further checks to help “break the spell of scammers”.

What recommendations have Santander made to the government?

Santander has issued a plan of action and a list of recommendations to the UK government. The bank claims that the UK government can prevent fraudsters from reaching people by bringing forward the Online Safety Bill.

The Online Safety Bill is a framework aiming to protect internet users from scams and hold tech giants to account. The bill requires social media, platforms, search engines and other apps to protect children and also tackle illegal activity while maintaining freedom of speech.

Santander has advised that there needs to be clear and accountable leadership within the government solely dedicated to tackling authorised push payment fraud (APP).

Enrique Alvarez, Head of Everyday Banking at Santander UK said: “The sheer scale and value of APP fraud can detract from the real impact of those crimes on individual consumers, who can lose more than just money - their confidence and mental health can also be significantly harmed. Unfortunately, we see this far too often, and it is time for us all to act together. The criminals who perpetrate these scams shouldn’t be getting away with it.”

How to stay safe from scams

Online bank scams continue to be on the rise thanks to the increasing use of online shopping and a number of other factors. To prevent yourself from being a victim of an online scam, it’s advised that you use a secure password online that you regularly change.

Likewise it is also important to regularly check your credit report and bank statements. If scammers are to gain access to your account it is likely that they will start small to evade detection before working their way up.

It is important to be very diligent when checking your emails and responding to those that appear to be from an official source. If you are unsure it is better to contact the company directly - not using contact information from the email in question - and ask if the request is legitimate.