London Daily

Focus on the big picture.
Sunday, Aug 30, 2026

Energy discount phishing: Robbed of £25,000 in text scam

Energy discount phishing: Robbed of £25,000 in text scam

Cost of living scams are on the rise, as fraudsters prey on people's anxiety around saving money.

Action Fraud says it has received reports of hundreds of different scams about energy support alone.

Diane Jones was pottering around the house when she was sent a text message telling her to claim her £400 energy discount.

As a rheumatoid arthritis sufferer, she receives disability benefit and assumed the £400 payment was connected.

But almost as soon as Diane, 65, entered her bank details, she realised she was a victim of fraud and contacted her bank, HSBC.

"I'd been rushing around that day and just clicked on it when it came on my phone. My mind was in a muddle. As soon as I did it, I realised I shouldn't have done," she says.


Diane Jones was walking her dogs when she received the fake text

Households across the UK are being given £400 off their energy bills to help with rising costs, but it is automatically applied to their bills and is not something people need to apply for.

Unfortunately for Diane, an office administrator who lives in Eastbourne, that wasn't the end of the matter.

She was subsequently assured, via HSBC's online chat feature, that her bank card had been cancelled to protect her from further scams.

When she was contacted later that week, by someone purporting to be from the bank's fraud team, she assumed they were following up on the earlier scam.


'He was so clever'


"I didn't doubt the man for one moment - he was so clever. He was talking and talking, not giving me any time to think," she says.

The man persuaded Diane that her account had been compromised and she needed to transfer her money to a new bank account, via an app which he asked her to download.

He also pretended he needed her help uncovering fraudsters working internally at the bank, and gave her a script of things to say when HSBC rang querying the transaction.

It wasn't until a colleague later searched online for the caller's incoming phone number that Diane realised the man was not from HSBC after all.

By that time, fraudsters had stolen £24,800 - all of her life savings, and her overdraft.

She was distraught.

"I was in such a state when I found out what had happened - one of my sons had to get me from work and drive me home," she says.

HSBC told Diane it had no record of the original attempt to cancel her card. It initially refused to reimburse her the money, as she had transferred it herself and had given misleading answers to the bank when contacted.

Diane became so anxious that she stopped spending money and decided to put all of her Christmas plans on hold.

But following an agonising wait, the money has been refunded by HSBC, after the bank admitted it had not fully protected her account at the time.

"Protecting customers from fraud is a priority for us and we are sorry that Ms Jones has been the victim of a scam," an HSBC spokesperson said.

"While we provided warnings to Ms Jones and explained about impersonation scams, we recognise that we missed an opportunity to take extra steps on Ms Jones's account and for that we apologise."

Charities are warning that cost of living fraud is on the rise


The charity Victim Support says it is being contacted by more and more people in Diane's situation.

"Fraudsters are deliberately taking advantage of people when they're at their most vulnerable. It happened during the pandemic and we're seeing it again with the cost of living crisis," says national fraud lead Wayne Stevens.

"We're seeing two types of cost of living-related fraud: there are frauds directly linked to government or other public policy announcements, such as energy rebates, where people are sent a fake text or email inviting them to claim this support.

"But there is also the second type, which plays on people's growing anxieties about money and the need to quickly reduce their costs."

Mr Stevens says the latter include false adverts for low mortgage rates, fake loan offers, or cheap places to rent.


'It's knocked me for six'


Action Fraud says it received more than 100 complaints about energy rebate scams in September, up from a handful the month before. This has since risen to almost 400 complaints about energy text scams alone in less than three months.

A survey of 2,000 people by UK Finance found three in five people were concerned about falling victim to financial fraud or a scam.

One in six said the rising cost of living meant they were more likely to respond to an unprompted approach from someone offering an investment opportunity or a loan - rising to a third of those aged 18-34.

Although Diane eventually got her money back, she still feels the scam's impact.

"I'm dubious of everything that comes through on my phone. It's knocked me for six - and I don't consider myself a vulnerable person"


What can you do if you think you've fallen victim to a cost of living scam?


*  Do not respond to unexpected emails, phone calls and text messages asking you to click on links or provide your personal details to claim cost of living-related rebates or payments. If you are in any doubt, get verification from the genuine organisation first - for instance, by phoning a known, legitimate number

*  Fraudsters often prey on fears about rising costs by offering cheap loan offers, reduced rent, holiday deals or other services. If it looks too good to be true, it probably is

*  If you have been a victim of fraud, contact your bank immediately. You can also report it to Action Fraud. For support and advice visit victimsupport.org.uk and search "fraud"

*  For information you can trust about cost of living support, and to check what you're eligible for visit: helpforhouseholds.campaign.gov.uk

Newsletter

Related Articles

0:00
0:00
Close
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
UK Corporate Confidence Rises to Highest Level Since March, Lloyds Survey Shows
Mike Ashley Attacks UK Government Business Rates and Cost-of-Living Policies
Scottish Universities Face Two Hundred Million Pound Annual Funding Gap, Report Warns
Entertainment Figures Urge UK Government to Protect People From AI Voice Cloning
Manchester Airports Group Confirms Customer Data Breached in Cyberattack
Seven Charged Over Vandalism at Donald Trump’s Turnberry Golf Resort in Scotland
Nearly 23,000 UK Households Expected to Move Home on Busiest Day of 2026
UK Benefit Payments to Arrive Early Ahead of August Bank Holiday
Reform UK Pledges to Replace GDPR and Cut Tax Administration Red Tape
Andy Burnham Launches Work Experience Plan for One Million Young People Outside Education or Work
Andy Burnham Faces Labour Backlash After Dropping Support for Political Donations Cap
Andy Burnham Announces UK-Wide Summit With Leaders of Scotland, Wales and Northern Ireland
×