High street banks are losing the battle against fraud as criminals switch tactics to directly target customers . Efforts by lenders to bolster their IT defences against hackers have simply encouraged fraudsters to bombard individual customers with scams , according to Financial Fraud Action UK . Despite investing millions in tackling fraud , losses from fraud rose last year as banks became less effective at preventing scams . Financial Fraud Action UK said this was ‘ largely due to criminals shifting their methods away from using malware attacks on online banking systems , which bank security processes identified ’ . Increasingly , it said , fraudsters are focussing on targeting individuals directly , which is harder for banks to stop . The report said the main ploy used by criminals is the ‘ impersonation and deception scam ’ whereby they pretend to be Attack.Phishing from a ‘ legitimate and trusted organisation ’ such as a bank , the police , a utility company or a government department . These scams typically involve the fraudster contacting Attack.Phishing the customer through a phone call , text message or email . Often the fraudster will claim Attack.Phishing there has been suspicious activity on an account , ask the individual to verify or update their account details , or claim Attack.Phishing they are due a refund . The criminal then attempts to trick Attack.Phishing the target into giving away their personal or financial information , such as passwords , payment card details or bank account information . Financial Fraud Action UK – which represents banks - said its intelligence suggests criminals have also recently increased their focus on ‘ phishing ’ emails claiming to be Attack.Phishing from major online retailers and internet companies . It warned these emails are an ‘ increasingly sophisticated ’ attempt to trick Attack.Phishing recipients into giving away personal and financial details , or into downloading malware software which hacks into their computers . Several banks have been targeted by high profile cyber attacks that have attempted to exploit weaknesses in their IT systems . Last November criminals launched an online attack against Tesco Bank that resulted in the loss of £2.5million from 9,000 accounts . Others to have been targeted include Royal Bank of Scotland and NatWest , Lloyds and HSBC . The threat to Britain ’ s financial infrastructure from persistent cyber-attacks prompted chancellor Philip Hammond to commit an extra £1.9billion in the autumn statement to boost Britain ’ s defences against the growing online threat .