Fraud has its own language — and understanding it is half the battle. Here’s what the most common terms actually mean.
There’s no single list of the fraud types most likely to affect you — fraudsters change tactics constantly. What doesn’t change is the value of knowing how common types work. Consumers face many kinds of fraud, such as scams, banking fraud, investment fraud and romance fraud. This glossary explains the terms you’ll hear most often.
What is fraud?
“Fraud is when trickery is used to gain a dishonest advantage, which is often financial, over another person.” - According to the National Fraud Reporting Centre.
Scam
Any scheme designed to trick you out of money or personal information — by phone, text, email, post or in person.
Banking fraud
Fraud involving your bank account or payments — for example, someone posing as your bank to move your money or making payments you didn’t authorise.
Investment fraud
Fake or misleading investment opportunities — often promising high returns with little risk. If it sounds too good to be true, it usually is.
Romance fraud
When someone builds a romantic relationship with you online to gain your trust, then asks for money or personal details.
Identity fraud
The criminal use of a stolen identity to obtain goods or services by deception. This usually involves the use of stolen or forged identity documents, such as a passport or driving licence.
Impersonation fraud
When a fraudster pretends to be from an organisation you trust — your bank, HMRC, the police or a delivery company — to get money or information from you.
APP fraud (authorised push payment)
When you’re tricked into sending money to a fraudster yourself — for example, paying an invoice that turns out to be fake.
Account takeover
When a fraudster gets into one of your existing accounts — email, banking or shopping — and uses it as if they were you.
Identity theft
The misuse of another person’s identity details (such as name, date of birth, current or previous addresses) without their knowledge or consent.
Synthetic identity
An identity made up of real and false information, used by fraudsters to open accounts or take out credit.
Phishing
Fake emails designed to look like they’re from a real organisation, tricking you into sharing details or clicking dangerous links.
Ghost brokers
A type of insurance fraud when an insurance company sells you a fake or illegal insurance policy, usually at a cheaper price.
Phishing by text message (Smishing)
Often a fake delivery, bank or tax message with a link.
Phishing by voice call (Vishing)
Someone phoning and pretending to be from your bank, the police or a company you use.
Data breach
When an organisation holding your details is hacked or leaks them. Your information can then be used for fraud — sometimes long afterwards.
Money mule
Someone who moves stolen money through their own bank account for criminals — often recruited with the promise of easy cash. It’s a crime, even if you didn’t realise what was happening
Social engineering
The tricks fraudsters use to manipulate you into acting quickly — urgency, fear, authority or friendliness — rather than hacking technology.
Protection and recovery terms
Fraud marker
A flag added to your credit report telling lenders you’ve been a victim of fraud (or are at risk), prompting them to take extra care with applications in your name.
Protective registration
A marker that notifies anyone who searches your credit report to take special precautions to check your identity before offering any credit.
Check the company is genuine
Use the FCA’s Firm Checker to confirm a bank, insurance or crypto company is genuine before sending money.
Cifas
The UK's leading fraud prevention service. It is a not-for-profit organisation that helps banks, lenders, insurers, telecommunications providers, retailers, public bodies and other organisations work together to protect customers and prevent fraud through the sharing of information about known and suspected fraud.
Two-step verification
A second check when you log in — like a code sent to your phone — so a stolen password alone isn’t enough.
Passkey
A newer, stronger way to sign in without a password, using your device and your fingerprint or face. Recommended by the National Cyber Security Centre (NCSC).
Crime reference number
The number you get when you report fraud to the police via the report fraud website —you’ll need it for your bank, insurers and credit reference agencies.
