Want to bank with us? Here’s how often we’ve been hacked
BANKS could be forced to reveal how often they are hacked to help customers decide where to put their money.
The Financial Conduct Authority (FCA) has launched proposals to help customers compare service levels for personal current accounts and business current accounts.
Under the plans, consumers could be presented with cigarette packetstyle warnings detailing the number of cyber hacks and system outages suffered by the bank.
The proposal comes after a string of high-profile data hacks, including a major incident involving Tesco Bank last year. Around 20,000 customers had sums of money worth hundreds of pounds taken from their accounts, while “suspicious activity” was identified in another 20,000.
The FCA also wants banks to publish service guides, such as how and when customers can make payments, cancel cheques, whether 24-hour help is available, and the amount of time before access to a current account is available through power of attorney.
Christopher Woolard, executive director of strategy and competition at the FCA, said: “Customers tell us they think ‘all banks are the same’ and so they are discouraged from looking for current accounts offering better performance. These proposals will make it easier for consumers to judge whether their bank is offering good service and for firms to see if they are competing effectively against other providers.”
With interest rates on current accounts at record lows, experts said security and customer service data could become a major deciding factor in people’s decision on where to bank.
Gareth Shaw, Which? money expert, said: “It’s vital that consumers have access to useful information that helps them make informed choices about which bank to move to. However, many customers that would benefit the most from switching banks, such as those who regularly rely on overdrafts, don’t switch.”
Richard Neudegg, head of regulation at uswitch.com, said: “For long-suffering consumers, it’s important progress is made on other initiatives such as open banking, to help shine a light on the costs banks charge their customers. Until it is possible to easily compare every benefit and cost of a current account, switching is likely to remain inert.”