What Is Social Engineering? Types, Examples and How to Stay Safe
Social engineering is the practice of manipulating you psychologically, tricking you into doing something you wouldn't have done had you known the truth, such as sending money, clicking on a link, or granting access to a system.
In this article, we will cover what social engineering is, how it works, common examples, and what to do if you have lost money.
What Is Social Engineering?
Social engineering is a tactic used by criminals to manipulate individuals into trusting them, often over a prolonged period of time, with the aim of persuading people to hand over information, access, or money by exploiting human trust and psychology rather than hacking systems.
Social engineering is prominent within fraud, and fraudsters use social engineering tactics to trick people into sending them money. This is classified as Authorised Push Payment (APP) fraud.
How Does Social Engineering Work?
Social engineering works as it focuses on human relationships rather than technology. Scammers are increasingly using social engineering tactics to embed themselves within communities, build trust, and then exploit that trust to carry out fraud.
Here are the psychological stages of social engineering:
Authority
People are more likely to comply and agree to do things with a person of authority, such as the police, the bank, or the government. Criminals regularly impersonate authoritative figures, as the victim stops evaluating the request on its merits and instead reacts to the position of the person who is asking.
Urgency
Time pressure tactics are commonly used by criminals, particularly in fraud. Time pressure prevents the victim from thinking clearly and causes them to make decisions impulsively, rather than exercising due diligence.
Fear
Criminals play on fear tactics to effectively pressure victims into acting without thinking. Fear of losing money, losing access, or facing legal consequences are common tactics used.
Trust
Scammers play on trust to trick victims. They work by building a relationship and being open about fake stories they have created about themselves to eventually deceive the victim into sending money.
Scarcity
Scarcity is a common tactic, and when used alongside pressure tactics, it is an effective way for fraudsters to manipulate a victim into sending money without performing the proper checks.
Reciprocity
Scammers may provide something at first, which they expect to receive more in return for. A ‘gift’ or ‘free trial’, or initial returns is a common way scammers use this tactic.
Why Do Attackers Use Social Engineering?
Scammers and attackers use social engineering because it is easier to exploit than hacking a system. Systems have security measures that cannot be influenced by psychological tactics. Social engineering preys on trust, emotions, and communities to exploit victims.
Types Of Social Engineering Attacks
Most social engineering tactics fall into four broad categories, based on the channel or method that was used.
Phishing - deceptive digital messages, designed to steal information or deliver malware
Pretexting - a fabricated scenario or false identity used to extract information or access
Baiting - an enticing offer used to lure individuals in
Physical exploitation - bypassing security through physical presence or technical channels (OR codes)
Social Engineering Examples
Authorised Push Payment (APP) scams, where a victim is tricked into sending money, are one of the most common types of scams, and UK finance reported that £576.4 million was lost to APP scams in 2025 alone. This shows that social engineering is an effective tactic used by scammers to manipulate humans rather than systems.
Here are some common examples of social engineering
One of the most common types of social engineering in scams is investment scams, where a scammer pretends to be a broker or a financial advisor and tricks the victim into investing in their scheme, with the premise of high and guaranteed returns.
Another common type of social engineering in scams is cryptocurrency scams. A scammer would claim to be a crypto expert. The fraudster presents a great cryptocurrency investment opportunity to you. They convince you that in order to invest, you need to send money to an investment crypto ‘wallet’ they’ve set up for you in your own name.
They would present you with a fake platform where you can see your profits increasing. Eventually, you want to withdraw, and the scammers ask for withdrawal fees, but the funds are never released.
Scammers would use social engineering tactics to pretend to be in a genuine relationship with the victim before manipulating them into sending money. The scam plays on the emotions and trust of an individual, making it a scam that affects the victim both financially and psychologically.
Scammers would use social engineering tactics to convince a victim that they are genuine sellers and that the item they are selling is legitimate.
Scammers regularly use the authoritative psychological aspect of social engineering to convince the victim that they are speaking with the bank, the police, or government agencies such as HMRC. They use pressure and scarcity tactics to trick the victim into sending money to keep it safe or to avoid conflict.
How To Protect Yourself From Social Engineering
You can protect yourself by following these steps:
Verify everything independently - never rely on the person's words alone
Slow down under pressure - always take time to think about your actions
Never trust ‘too good to be true’ offers
Question unrealistic and high returns
Never share personal details
Never share access, or one-time passcodes
Do your due diligence - check online, through the FCA register
Don’t trust out of the blue contact asking you to invest, or send money
Review documents and contracts carefully
It is important to remember that the checks you can carry out may differ depending on the request you are being asked to make. We have written guides on different types of scams and the checks you can perform. You can find further information here on: investment, cryptocurrency, romance, purchase, safe account, and impersonation scams.
What To Do If You've Been Targeted
If you have already been targeted and lost money, do not panic, there are steps you can take to recover from this.
Stop contact with the scammer immediately
Do not send any further funds
Contact your bank and tell them what happened
Report it to Report Fraud
Watch out for recovery scams
Assess options for recovery yourself for free, or through a specialist FCA-authorised firm such as Refundee
It’s a free process to claim your money back from your bank and the Financial Ombudsman Service and we have written a guide on how you can do this.
If you would prefer support during the process, Refundee can help you on a no-win, no-fee basis.
Our fees are fair and straightforward. We only charge a fee if we’re successful, and there are no hidden or upfront costs.
Frequently Asked Questions (FAQ’s)
What best defines social engineering?
Social engineering is the practice of manipulating you psychologically tricking you into doing something you wouldn't have done had you known the truth, such as sending money, clicking on a link, or granting access to a system.
Which example of social engineering?
An example of social engineering is when a scammer builds trust and a genuine looking relationship, before requesting money for different reasons, also known as a romance scam.
What is social engineering in the UK
Social engineering in the UK is very common, particularly within fraud, where scammers use social engineering tactics to trick victims into sending money to them.
Conclusion
Social engineering is a common way criminals manipulate victims, and with the rise in fraud across the UK, social engineering tactics are becoming increasingly sophisticated.
It is important to keep yourself informed of new emerging tactics and to spread awareness of red flags and checks people can do to prevent social engineering fraud.
If you have already been affected, do not panic; you have options to recover.
Refundee can provide you with clear and honest guidance on the best next steps.
More about Refundee
Here are the technical bits:
Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.
Registered with the Information Commissioner's Office; registration number: A8986071.
Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.
Registered as a company in England & Wales; number: 12855931.
Written by Stuart McFadeen, Co-founder at Refundee.
Stuart specialises in banking regulations and APP fraud recovery, helping victims navigate claims against UK banks that have failed in their duty to protect customers. He has featured regularly in the media discussing fraud and victim rights, including the BBC and ITV.
