European Fraud Protection Group

Fixed-Term Deposit Scams

Fixed-term deposit scams exploit the desire for secure, predictable investment returns by offering savings or deposit products with interest rates significantly above market norms. These schemes frequently operate by cloning the identity and branding of legitimate, well-known banks and financial institutions, creating websites and documentation that closely mirror the genuine institution. Victims believe they are opening a deposit account with a reputable bank, when in reality their funds are being diverted to accounts controlled by criminals. EFPG has observed a significant increase in this category of fraud and provides specialised advisory support to affected individuals.

How This Type of Fraud Typically Works

1

Fraudulent comparison websites or targeted advertising promote fixed-term deposit rates that substantially exceed current market rates.

2

The victim is directed to a professional-looking website that clones the branding and corporate identity of a legitimate bank or financial institution.

3

Application forms and documentation closely replicate genuine banking procedures, creating a convincing appearance of legitimacy.

4

The victim is provided with account details and instructed to transfer funds, which are directed to accounts controlled by the fraud operation rather than the purported bank.

5

Fabricated account statements and balance confirmations are provided to maintain the illusion of a legitimate deposit.

6

When the deposit maturity date arrives, the victim finds themselves unable to access funds. The fraudulent website may have been taken down, and contact channels become unresponsive.

Warning Signals

  • The interest rate offered is significantly higher than rates available from verified, regulated banks.
  • The deposit is promoted through a comparison website or intermediary rather than directly through the bank official channels.
  • Payment instructions direct funds to an account name or reference that does not match the purported bank.
  • The entity communication uses email domains that are similar to, but not identical to, the legitimate institution domain.
  • There is no ability to verify the deposit through the bank official website, mobile app, or branch network.
  • Personal banking credentials or additional fees are requested at or after the point of deposit.

Regulatory Context

Deposit-taking is a regulated activity across the EEA, and only entities holding a banking licence (credit institution authorisation) under the Capital Requirements Directive (CRD) and Capital Requirements Regulation (CRR) may accept deposits from the public. Legitimate deposits are typically protected by the Deposit Guarantee Scheme Directive (DGSD), which mandates protection up to EUR 100,000 per depositor per institution. Entities that accept deposits without the required authorisation are committing a criminal offence. National financial supervisory authorities and central banks maintain registers of authorised credit institutions, and ESMA and the EBA coordinate the publication of fraud warnings related to clone firm activity.

How EFPG Approaches These Cases

  • Verification of the entity identity against official banking registers and confirmation of clone firm status.
  • Urgent transaction tracing to identify the accounts where funds were received and any subsequent transfers.
  • Preparation of bank recall requests to the originating institution, emphasising the fraudulent nature of the transaction.
  • Filing of regulatory complaints with the relevant supervisory authority regarding the impersonation of a licensed institution.
  • Preparation of supporting documentation for law enforcement reports, including evidence of the cloned identity.

Need Advisory Support?

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