Security experts have issued an urgent alert to households across the United Kingdom regarding a sharp rise in sophisticated fraud targeting digital wallets like Apple Pay and Google Pay. Criminals are using high-pressure phone scams to hijack accounts, funding rapid spending sprees without ever needing a physical card.
How the Digital Wallet Scam Operates
The scam typically begins with a phone call from a fraudster convincingly posing as a bank official. To create instant panic, they will ask the victim if they have authorised specific high-value purchases that are completely unfamiliar.
To supposedly "stop" these fake transactions, the scammer instructs the victim to provide a one-time security code or to approve a notification sent to their smartphone. In reality, the criminal is attempting to add the victim's card details to a digital wallet on their own device.
Danai Antoniou, chief scientist at Gradient Labs, clarifies a critical detail: the notification the victim receives is entirely legitimate and generated by their bank. By approving it, the victim unknowingly hands over "the keys" to their account.
Pre-empting Security & The Criminal's Endgame
This scam is particularly effective because fraudsters cleverly pre-empt the bank's standard security warnings. They often tell the customer that any "never share this code" message is just a "routine comment," making the victim dismiss the very safety measures designed to protect them.
Once the card is successfully added to the fraudster’s Apple Pay or Google Pay, they move quickly. Accounts are drained through purchases at high-value merchants, such as technology stores and luxury fashion retailers.
Stolen electronics and designer goods are favoured as they can be resold rapidly on the secondary market with minimal profit loss, simplifying the money-laundering process for the criminal gang.
How to Protect Yourself
UK Finance is urging all consumers to take immediate protective steps. The key recommendations are to set up active transaction alerts within your banking app and to check your account statements regularly.
If you spot any suspicious activity, you must contact your bank instantly and report the incident to Action Fraud.
This stark warning arrives as the UK confronts what experts describe as an "obesity crisis" in fraud, with digital wallet cons becoming increasingly common. The fundamental rule for households is: never share one-time passcodes over the phone, no matter how genuine or convincing the caller appears.
