Delay bank transfers to thwart fraudsters, says policing chief

BANK transfers should be automatically delayed to prevent fraud, a policing chief says.

Mark Shelford, the national lead for fraud with the Association for Police and Crime Commissioners, said the delay would provide a “cooling off” period for people to rethink a transfer if they realised they had been scammed.

Mr Shelford, PCC for Avon and Somerset, said it would also give banks time to take action, especially if it was part of a systematic fraud on multiple victims in a particular sector or area.

He thought it should be 24 hours, but acknowledged banks and their customers could resist that timescale because of the financial and economic benefits of quick transfers, and it could end up being a two-hour delay.

It comes as the Government prepares to unveil a new fraud strategy to tackle clear-up rates that see as few as one in 1000 offences solved. Yesterday, The Sunday Telegraph revealed ministers are planning to elevate the status of fraud to put it on a par with terrorism, forcing police to devote more officers and resources.

The proposal has been backed by Mike Haley, chief executive of Cifas, a fraud prevention body that includes all banks and building societies in its 600-strong membership.

He thought the delay should be restricted to suspicious payments and vulnerable customers. He said financial monitoring systems to detect such transfers were getting more sophisticated, and stopping them through a delay would reduce costs to banks who will be compelled by new rules to reimburse victims of authorised “push payment” scams over £100 in 48 hours.

It is thought the possibility of a delay is being considered by the Government’s fraud taskforce led by Tom Tugendhat, the security minister.

Mr Shelford was confident it could be resolved, saying: “I don’t expect to get 24 hours, but I might get two. That would do two significant things.

“First, it would allow for a cooling off period for the individual to think, ‘Oh gosh, have I just been scammed?’

“Secondly, government agencies and banks systems which are monitoring this would have time to collate and recognise a hotspot area, do something about it and turn it off.”

The Home Office did not comment on specific proposals, but said the strategy would establish a “unified and co-ordinated” response from government, law enforcement and the private sector.