Lloyds Bank Warning: New Scam Targets UK Customers – What to Do Now

Lloyds Bank Warning: New Scam Targets UK Customers – What to Do Now

What happened

Lloyds Bank has issued an updated fraud alert about a scam that exploits a payment method called Pay by Bank. According to reports published on 24 April 2026, fraudsters are contacting customers and tricking them into approving payments through this system. The scam often starts with a phone call, text, or email that appears to come from Lloyds or another trusted organisation. The caller claims there is a problem with the account or a payment, and then asks the victim to confirm a Pay by Bank request sent to their mobile banking app. Once the customer approves it, money is transferred directly from their account to the fraudster.

Why this matters

A BBC expert warned in March 2026 that Pay by Bank payments carry a higher risk because they may not offer the same level of consumer protection as card transactions. With a credit or debit card purchase, you can often dispute a transaction and get your money back under chargeback rules or Section 75 of the Consumer Credit Act. Pay by Bank is essentially a bank transfer – once you authorise it, the money leaves your account immediately, and recovering it is much harder. Many banks, including Lloyds, have signed up to a voluntary reimbursement code for authorised push payment (APP) fraud, but that code does not cover every situation, and protections have been under review. The current environment means that if you are tricked into confirming a Pay by Bank payment, you may not be automatically entitled to a refund.

The timing of the alert suggests an active campaign, so anyone with a Lloyds account should be cautious about unexpected requests to approve payments.

What readers can do

1. Treat unexpected calls or messages with suspicion. Lloyds will never call you and ask you to approve a Pay by Bank request. If someone contacts you claiming to be from the bank and asks you to do this, hang up. Use the phone number on the back of your card or the official app to call the bank directly if you want to check.

2. Always log in via the official app or website. Do not use links or numbers provided in an email or text. Go to the Lloyds app or type the web address yourself. You can then check for any genuine alerts or messages.

3. Never approve a payment unless you are certain of the reason. Pay by Bank requests require you to confirm the amount and the payee. If you do not recognise the payee name or the reason given, decline the request. Contact your bank if you are unsure.

4. Enable in-app alerts and transaction notifications. This helps you spot unusual activity quickly. If a payment goes out that you did not authorise, report it to Lloyds immediately.

5. Report scams to the bank and to Action Fraud. If you think you have been targeted, call Lloyds on 0345 300 0000 (or 0345 602 0410 from abroad). You can also report it to Action Fraud online or by calling 0300 123 2040.

6. Keep your banking app and phone software up to date. Security updates often fix vulnerabilities that could be exploited.

Additional general tips

• Be wary of anyone pressuring you to act quickly. Scammers create a false sense of urgency.
• Never give out your PIN, password, or one-time passcode, even to someone who says they are from the bank.
• If you are a customer of another UK bank, check whether they have issued similar alerts about Pay by Bank fraud.

The key point is that Pay by Bank is a fast, irreversible way to move money. Treat any unexpected request to approve a payment the same way you would treat a request to transfer money to a stranger: do not do it unless you are absolutely sure it is legitimate.

Sources

• Lloyds Bank Customer Alert Update – UK Scam Warning and Security Risks Customers Must Act On, capitolskyline.com, 24 April 2026.
• Pay by Bank Payments – BBC Expert Warns of Reduced Consumer Protection, capitolskyline.com, 16 March 2026.