Banks accused as fraudsters strike every 15 seconds
BANKS are under mounting pressure to better protect customers who fall prey to financial scams.
More than a million incidents of financial fraud occurred in Britain in the first six months of this year, which is one every 15 seconds, according to Financial Fraud Action UK, a joint effort by banks and financial companies to combat the problem. The figure is a rise of 53 per cent on the same period last year.
People are increasingly being tricked by criminals into transferring money from their accounts. Fraudsters convincingly pose as bank employees via email or over the phone and pressure customers to click on a link and sign into online banking, or move money, for ‘security reasons’. These methods are often referred to as ‘phishing’ and ‘vishing’ respectively.
But few people realise they have no legal right to a refund from their bank in such cases. By comparison, greater protection is afforded when credit or debit cards are used fraudulently.
In response to this growing threat, consumer group Which? is using special legal powers to demand the Payment Systems Regulator formally investigate the scale of bank transfer fraud and its cost to consumers. It also wants the regulator to propose new measures to safeguard customers’ money and ways for banks to take on greater responsibility.
Only last week, it emerged that three corrupt Lloyds Bank employees aided vishing activities by jailed conman Feezan Hameed Choudhary by handing over customers’ bank statements in return for cash.
Choudhary siphoned £113 million from at least 750 companies by cold calling – including £2.2 million from one firm of solicitors alone.
The Financial Conduct Authority has been notified about the action by Which?, brought to the fore as a ‘super complaint’.
Certain consumer groups are legally allowed to make complaints to regulatory bodies in the interests of the public. Regulators have 90 days to investigate and respond.