I have dementia and scammers stole my £1,800: are banks doing enough to help vulnerable victims?

A former police officer with dementia has told how fraudsters persuaded him to hand over almost £2,000 despite knowing the methods used by scammers.

Peter Middleton, 70, who was diagnosed with dementia in 2019, was approached by scammers who called him pretending to be employees of the fraud department of his bank, Barclays.

After some back and forth, they said that Mr. Middleton had received a new bank card in the last two days, which was true, and they gave the last four digits.

They explained that while they were members of the fraud team, they were investigating an internal fraud case by team members and needed Mr Middleton’s assistance to do so.

Mr Middleton was still not satisfied with the legitimacy of the call and said he would call back from another phone.

“I know that if I put the phone down and call again on the same phone, there is a chance that they will pick up every other call I have, even if I didn’t end the call properly,” he told This is Money.

Scammers can forward calls by redirecting all calls intended for the victim’s phone, or calls they make, to their number. However, it appears that in this case the scammers managed to intercept Mr. Middleton’s call.

“They slowly unfolded a story about someone from the fraud department who was stationed overseas and who tried to transfer money from my account. They said there had been two attempts in the last few days but they had been blocked,” he explains.

“They asked me to complete one of those transactions to find out where the money was going. I thought, that sounds reasonable, how am I going to do that?”

Mr Middleton, who spent the last 12 years of his working life as a community police officer and previously worked in IT, said he wanted to help the police ‘as a good citizen’.

The scammers instructed the pensioner to transfer money from his checking account to what they believed to be the bank account of the fraud department manager.

He was warned that Barclays would question the payment, but that he should go ahead with the payment, stating that it was to a family member.

‘Looking back now, I was a fool, but they were so convincing. They talked to me for almost an hour and a half and groomed me and I was set up.’

Mr Middleton transferred the £1,800 into his current account and when Barclays contacted him to ask about the payment, he said it was being made to an aunt.

It was only when Mr Middleton told his wife about this that he realised it might be a scam.

“I have helped victims of fraud many times before, but I had never heard of a fraud of this nature and with this brilliance,” he told This Is Money.

‘That person was really caring and really good at what he did. They were really pulling my leg and playing on the fact that I wanted to help.

‘It was reassuring and they kept saying how useful it was because it was a big fraud and there were vulnerable people who were being victimised. I wanted to help.’

Even now, Mr Middleton doesn’t know how the scammers got his information and targeted him. ‘I’m very careful about shredding all the information I get from the bank before I throw it away. I’m security conscious,’ he says.

People with dementia at ‘greater risk’ of fraud

Fraud is the most common crime in the UK. One of the most common forms is Authorised Push Payment (APP) fraud, where scammers trick victims into transferring money from their accounts.

According to the Alzheimer’s Society, people with dementia are at greater risk of fraud because they find it more difficult to manage money and assess risk.

Dr Tim Beanland, head of knowledge and learning at the charity, said: ‘Anyone can fall victim to fraud, but for the almost one million people currently living with dementia in the UK, it can mean they are at greater risk of financial abuse.

‘Dementia can affect people’s confidence in managing their money, making them less able to assess risk, and some symptoms can also lead to poorer reading and math skills.

‘It is abhorrent to defraud vulnerable people for financial gain, but unfortunately it is something that criminals do every day using aggressive or increasingly sophisticated tactics. As in the case of Peter, who genuinely thought he was speaking to his bank’s fraud department.

‘That’s why it’s so incredibly important that people like Peter share their personal experiences of financial abuse. They want to highlight how common and diverse it is, how you can protect yourself, and what support and services are available to people who think they’ve been scammed.’

Mr Middleton said: ‘When you have dementia you know you’re on a path of cognitive decline and every now and then you come across things that throw that into sharp relief. That was one of those occasions, it was very difficult to come to terms with.

“I think part of me the whole time, even on the phone call, was like, What if this isn’t legitimate? But the part of me that wanted to do my civic duty overrode the part of me that was cautious. I felt, and still feel, terrible. I feel like a complete clown.”

Fortunately for Mr Middleton, Barclays refunded the £1,800 sent to the scammers.

However, there are broader questions about what protection banks provide to people with illnesses and disabilities.

How can people with dementia and banks prevent fraud?

We asked Barclays what they are doing to protect people with cognitive decline.

Customers are always encouraged to contact the bank if they have an illness or disability that ‘may affect their ability to use banking services or make them more vulnerable.’

According to Barclays, there are also options to give family members and carers access to accounts, either directly or by informing the bank that they have legal authority to do so, such as a power of attorney.

Power of Attorney is a document that gives someone the authority to make decisions on behalf of someone else regarding their finances and property. You can apply for one on the government website.

A power of attorney is not the same as a joint bank account, and an attorney can only help manage the person’s account in the way they want. Crucially, they have no legal claim to any money.

If a person is no longer able to make financial decisions for themselves and is therefore unable to apply for Power of Attorney, the Court of Protection can appoint a deputy to act on their behalf.

Barclays also offers its customers the opportunity to invite someone to become an additional cardholder or account manager. To do this, they must be a Barclays customer themselves.

An account manager can set controls such as maximum spend, transaction and withdrawal limits, and controls over where spending can occur.

Memory problems can make you less aware that a crime has occurred, or you may remember fewer details and therefore not be able to report the problem.

We also asked Barclays what procedures it has specifically for vulnerable victims of fraud, particularly those suffering from cognitive decline, but Barclays did not respond.

Further advice on how to spot scams and what people should do if they are scammed by scammers is available from the Alzheimer’s Society Dementia Support Line (0333 150 3456).