Woman who lost £64k in Lloyds text scam is told she doesn’t qualify for a refund

The scammer told victim Alma Burtt not to hang up or speak to family members or the bank, saying they could be the scammers. In the meantime, he transferred 14 payments

Alma Burtt lost her life savings of £64,000 after receiving a fake Lloyds text in May – but despite being a victim, her bank refused to reimburse her.

The 60-year-old received a message telling her to call a phone number to verify a transaction.

As it was not unusual for her bank to text, she did so and was caught out by a fraudster claiming to work for Lloyds.

He told Ms Burtt he would order a new debit card and persuaded her to download a remote access app called AnyDesk to secure her account.

She said: “I had no reason to disbelieve this person. He sounded very professional and convincing and said he was transferring funds to secure them.”

The scammer told her not to hang up or speak to family members or the bank, saying they could be the scammers. While Alma held the line, he made 14 payments.

Have you had a fraud experience with your bank? Get in touch: emma.munbodh@mirror.co.uk

Lloyds refused to reimburse her because it says she was aware the payments were being made.

Consumer watchdog Which? got involved and the bank refunded the seventh payment onwards.

Which? says Alma should be fully reimbursed and advised her to go to the Financial Ombudsman.

Lloyds said: “When we blocked the first payment, she told us the payments were for her cousin and confirmed the transaction should go ahead.”

More than £4m on average was stolen by fraudsters every day in the UK during the first half of the year as losses skyrocketed during the pandemic.

Trade body UK Finance said fraud committed when individuals are tricked into handing over money and personal details surged by 71% compared with the first six months of last year.

Less than half of the money lost in these cases was refunded by banks.

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In total, £754million was stolen through fraud in the first half of the year, an increase of 30% compared with the same period last year.

Within this total, so-called authorised push payment (APP) fraud – when victims think they are paying a genuine organisation – rose by 71% to £355million.

Separate findings from the Liberal Democrats this week accused the Home Secretary Priti Patel of being “asleep at the wheel” in the fight against fraud.

A report by the party found that over 22,000 investigations into fraud cases were dropped by police last year.

Analysis of Home Office figures shows that between April 2020 and March 2021, 22,420 fraud cases were closed without a suspect being identified, an increase of 20% on the previous 12 months.

Only 9% (4,853) of all the 51,870 cases closed in 2020/21 resulted in a suspect being charged.

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Those scams can range from fake delivery texts asking for payment, which were common during the pandemic, to higher-value losses when fraudsters pretend to be solicitors during a house purchase.

Negotiations between banks to create a permanent, central pot of money to refund these scam victims collapsed earlier this year.

Katy Worobec, managing director of economic crime at UK Finance, said: “We are calling for coordinated action and increased efforts from government and other sectors to tackle what is now a national security threat.”

Ms Worobec said that co-ordination was needed between banks and a range of technology providers to tackle the issue, as well as raising awareness among consumers.

However, the banks’ and police’s own efforts in stopping the rising tide of fraud will also come under the microscope, with ministers promising an overhaul in the fight against fraud.

Liberal Democrat Home Affairs Spokesperson Alistair Carmichael MP said: “The country faces a growing fraud epidemic, yet Priti Patel is asleep at the wheel.

“Far too many criminals are getting away with this appalling crime, and far too many victims are being left without justice.

“It is a national scandal that vulnerable people are being abandoned after losing life-changing sums of money.

“The government must urgently toughen up its approach to fraud, ensure victims are refunded and give police the resources they need to catch those responsible.”