Three Ways to Safeguard Your Bank Account Amid Rising Scam Levels
Scam-related complaints have surged to unprecedented levels, with 8,734 grievances lodged in the first quarter of this financial year. More than half of these complaints were related to customer-approved online bank transfers, also known as authorised push payment (APP) scams.
The Financial Ombudsman Service (FOS) reported that this quarterly total is the highest since tracking began in the 2018/19 financial year. The surge is attributed to various factors, including multiple claims due to involvement with multiple firms and an increase in online fraud cases brought by professional representatives.
Chief Executive and Chief Ombudsman of the FOS, Abby Thomas, emphasized the emotional and financial distress caused by falling victim to fraud. The FOS has investigated thousands of cases and returned over £150 million to victims. Thomas encourages victims not to hesitate in coming forward.
Protect Yourself:
- Many banks offer additional protection for consumers and reimbursement under voluntary codes.
- TSB and other banks have fraud refund guarantees.
- New mandatory reimbursement rules set to be introduced next month will expedite the reimbursement process.
Director for Banking at the ombudsman, Pat Hurley, highlighted the evolving methods of fraudsters, leading to approximately 500 fraud and scam complaints being resolved each week. The FOS upholds 44% of fraud and scam complaints in favor of consumers, exceeding the 37% average across all products and complaint issues.
The FOS advises consumers to remain vigilant and offers the following tips to avoid falling victim to scams:
“A bank or official body will never call and instruct you to move money to a ‘safe account.'”
“Be cautious of being asked for money as part of an employment opportunity, as this could be a scam.”
“Research investments, especially those found on social media, to avoid losing money to scams.”
The rise in social media investment scams and multi-stage fraud underscores the necessity for individuals to exercise caution and due diligence in financial transactions. As fraud detection methods improve, the FOS remains committed to investigating cases and ensuring fair outcomes for consumers.