Finance companies are being used by scammers to target savers’ cash.Photograph: Finn Hafemann/Getty Images

With interest rates falling, you are hunting for the best home for your cash, so when an advert for a generous fixed-rate savings account offered by a leading financial brand pops up, you sit up and take notice.

But it is a scam – one where Britons are being tricked into depositing their nest-egg cash, only for the money to be siphoned off by fraudsters who are impersonating a financial company – in this case, the money transfer company Wise.

How it works

The online ad prompts customers to fill in a form. This results in a call back to discuss investment options. That the interest rate is only slightly better than the market makes the offer appear plausible.

The caller guides people to open a real Wise account under the pretence that it is a savings account. To maintain the facade, victims receive correspondence carrying the Wise logo and correct postal address.

Martin Richardson at National Fraud Helpline, a law firm that specialises in scam recovery cases, describes it as “one of the most sophisticated and convincing scams we have seen”.

He says: “Once they have your details, they will instantly recognise your phone number and ask you to pass security questions. The email address seems very believable, but it’s the English-speaking scammers that add a high level of plausibility.

“We think that when the scammers help set up the victim’s genuine Wise account, they put the two-factor authentication and virtual card details into their own phone.” Having used the victim’s details to set up Apple Pay, they then transfer the “savings” account money into Wise accounts under their control.

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With the scammers “spending good money on social media adverts”, Richardson says it is highly likely that there are many victims.

What the scam looks like

In this case, the fake ad is offering 5.55% on a one-year easy-access savings account, or 5.85% with no withdrawals in the 12-month period.

The advert, and all subsequent communication, use the Wise logo and the correct postal address. However, although Wise customers can put their balance in an interest-earning fund, it does not offer classic savings products such as this.

Wise says: “We’re aware of scams that use branding of financial services providers to deceive people into thinking they are holding, or investing, their money.

“Whenever we come across fraudulent attempts to impersonate Wise, including on social media platforms, we take prompt action to get the content removed.”

What to do

This is authorised push payment (APP) fraud, which involves tricking someone into voluntarily sending money from their bank account.

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Providing the money was sent to another UK account, victims should, in theory, be able to claim their money back from their bank, or payment service provider, thanks to mandatory rules introduced last year.

You should contact Wise either by flagging the transaction or calling up (there are instructions on its website) and file a police report. You can also tell the Financial Conduct Authority.

Richardson says his law firm has helped two victims each get more than £20,000 back.

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