Banks shamed for refusing to help victims of internet fraud
BANKS are failing to help the victims of online fraud – and shirking responsibility for tackling the £10billion-ayear crime, MPs say.
In a damning report, they demanded that financial institutions ‘step up’ to deal with the issue, which causes ‘ untold misery’ for those affected.
Banks were ‘unwilling to share information’ about fraud with customers, the MPs noted, adding: ‘The balance needs to be tipped in favour of the customer.’ They must find more effective ways to fight fraud and be held responsible for returnenough ing money to customers who fall victim to scams, the report said.
The Public Accounts Committee revealed online fraud is the most prevalent crime in England and Wales, with around two million cases last year, costing an estimated £10billion. But only 20 per cent of fraud is thought to be reported.
The MPs’ report said the Home Office response was ‘too slow’ and the approach by police in England and Wales was ‘inconsistent’. But most of its criticism was reserved for banks. It said they do not accept responsibility for reducing fraud as the industry is not required to give data about individual institutions. This means customers do not know which banks are best at protecting them from online fraud.
‘Banks are not doing enough … their response has not been proportionate to the scale of the problem,’ the report said.
‘Banks need to take more responsibility and … work on information sharing so customers are offered more protection,’ it continued.
The report also said the Home Office must ‘ensure banks are committed to developing more effective ways of tackling card-not-present fraud … held to account for this and for returning money to customers who have been victims of scams’.
The MPs said young people must be warned about sharing personal details online, as they are increasingly likely to fall victim to cyber fraud – despite it being ‘perceived primarily as affecting the elderly’.
Labour’s Meg Hillier, PAC chairman, said: ‘Online fraud is a virulent and unprecedented threat that causes untold misery and costs individuals and businesses billions … Banks in particular need to step up, take responsibility and focus sharply on protecting and informing their customers.’
‘Need to take more responsibility’