According to data from the UK’s fraud tracking team, Action Fraud, there has been a massive rise in TSB phishing scams in the past few weeks. Customers of TSB have been duped into handing over their online banking credentials to scammers. Action Fraud is now receiving around 10 complaints a day from TSB customers who have fallen for phishing scams.
A Nightmare Scenario for TSB Customers
The problem that made the scams possible was the separation of the TSB banking system from Lloyds Bank, of which TSB was part until 2015. TSB moved over to a new core banking system provided by Banco Sabadell, the Spanish bank which took over TSB. That transition happened in April. Unfortunately for TSB and its customers, it did not go smoothly.
While migrating customer information to the new core banking system, many customers were locked out of their accounts and were unable to access their money. Some customers were presented with other customers’ bank accounts when they logged in online, and there have been cases of customers having money taken from their accounts without authorization, and transfers have been made to the wrong bank accounts. It is almost June, and the problems have still not been completely resolved.
Customers starting to experience problems over the weekend of 21/22 April and the problems were understandably covered extensively by the media with many customers taking to Social Media sites to vent their spleens over the chaos. For scammers, this was too good an opportunity to miss.
Action Fraud had received more than 320 reports of TSB phishing scams in the first three weeks in May. There were only 30 reports of such scams in the entire month of April. That’s an increase of 969%.
TSB Phishing Scams Soar
The situation was ideal for scammers. Many TSB customers could not access their accounts, so there was little chance of customers realizing they had been defrauded until it was too late.
TSB staff were overworked dealing with the IT problems and its helplines were overwhelmed with calls from customers unable to access their money. When customers realized they had been scammed they were unable to contact the bank quickly. There have been reports of customers seeing money taken from their accounts while they were logged in, yet they could not get through to customer support to stop transfers being made.
The TSB phishing scams used a combination of SMS messages, emails, and telephone calls to obtain customers banking credentials. As is typical in these types of scams, customers were sent links and were asked to use them to login to their accounts. The websites the bank’s customers visited looked exactly how they should. The only sign that the website was not genuine was the URL, otherwise the website was a carbon copy of the genuine TSB website.
Many victims of the scam had received an email or text messages, which was followed up with a voice call to obtain the 2-factor authentication code that would allow the scammers to gain access to the victim’s account. While the requests from the scammers may have seemed unusual or suspicious, this was an unusual situation for TSB customers.After that information was obtained, the scammers went to work and emptied bank accounts.
According to data from cybersecurity firm Wandera, TSB has now jumped to second spot in the list of the financial brands most commonly used in impersonation attacks. Prior to the IT problems, TSB wasn’t even in the top five.
With the bank’s IT issues ongoing, the TSB phishing scams are likely to continue at high levels for some time to come. The advice to TSB customers is to be extremely wary of any email, text message or call received from TSB bank. Scammers can spoof email addresses and phone numbers and can make text messages appear as if they have been sent by someone else.