DIAL 555 FOR BANK FRAUD

Ministers and police plan new hotline for customers who fear they’ve been scammed

VICTIMS could be told to dial a new 555 hotline under plans to beat bank fraud.

Modelled on the 999 emergency number, it would alert banks to illegal money transfers and help crack down on scams.

Campaigners cautiously welcomed the idea, which is being developed by ministers, police and financial chiefs.

‘When it comes to fraud, time is of the essence,’ said Martyn James, a consumer champion. ‘Setting up a new hot- line for fraud victims where the number is as easy to remember as 999 is a great idea in theory as it will hopefully encourage more people to report scams.

‘But if the person that answers then has to call someone else who has to call someone else, the worry is that it could actually slow the process of tracking the victim’s money.

‘Banks have only a tiny window for getting money back so they must be told immediately.’

UK Finance, an industry body, recorded 937,518 cases of fraud in the first half of the year. That works out at more than 5,000 a day and customers lost over £366million between them.

Criminals have masqueraded as police officers, government officials and bank staff to trick customers into handing over their account details. Other gangs use scam text messages or emails to obtain personal information.

Police rarely investigate individual instances of bank fraud, instead compiling details for a City of London force database. Victims are advised not to dial 999 but to contact Action Fraud on a 24-hour number, 0300 123 2040.

The lack of an emergency response can mean those who realise they have

been duped are unable to stop money being moved out of their accounts.

It is thought this is the main problem the 555 number would tackle. A faster response would allow banks to freeze money in the clearing system.

However, precise details of how the hotline would work are unclear as the proposal is still in its very early stages.

The idea was mooted at a meeting last month of the Joint Fraud Taskforce, which was set up by Theresa May to combat crimes that she said ‘shamed our financial system’.

Minutes of the meeting reveal that Brian Dilley, director of fraud and financial crime prevention at Lloyds Banking Group, said: ‘At its simplest the number could be a triaging facility directing victims to the appropriate agency.

‘At its most ambitious it could sit in front of enhanced data sharing/analytics which would take in all reporting and provide standardised reporting and a collective intelligence picture across fraud and money laundering leading to improved coordinated activity for victims, law enforcement and industry.’

Members of the committee, including Home Secretary Amber Rudd and police chiefs, agreed to take the idea forward.

James Freedman, fraud ambassador for City of London Police, said: ‘The problem is that people may liken the number to 999 and expect an emergency response. In reality fraud can take time to investigate.

‘However, it is vital to encourage more people to report scams, even in instances where they have got their money back or not fallen for them at all, as this is the only way the body of information available to the police will grow.’

Graeme Batsman, of the Data Security Expert consultancy, said an easy to remember number would increase awareness if displayed prominently.

He added: ‘If 100 people all report the same dodgy website it would be easier for the authorities to shut it down than if they get a couple of reports from different police forces.’

However Richard Emery, fraud expert at consultancy Keys, warned that police resources were the key factor.

‘If dialling 555 generated a better response than victims get now then great,’ he said.

‘But unfortunately I don’t think it will make a jot of difference until the police are properly resourced to respond to fraud. It is so difficult to trace these people and so many cases are not investigated.’

Last night Mr Dilley told the Daily Mail that Financial Fraud Action UK, a body which he chairs, was exploring initiatives to help cut fraud, including that of a central phone number.

A UK Finance spokesman said: ‘Protecting customers from fraud is a top priority for all banks and the industry is always investigating new ways to improve its response. This is one potential idea that is being explored and is in the early days of development.’

‘Resources are the key’