Of Special Interest
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
28th May 2019
New industry code to tackle fraud must deliver, says Which?
Banks cannot delay tackling transfer fraud a single day longer, ‘Which?’ is warning, as new research shows a staggering £674 a minute is lost to this devastating crime. The consumer champion is calling for all banks to urgently reassure their customers that they will be better protected against fraudsters by signing up to the new voluntary industry code.
While the code represents a significant step forward in the fight against bank transfer scams, ‘Which?’ believes further critical steps are required to halt this worsening crime. Three years on from its super-complaint, losses to bank transfer fraud are spiralling out of control, with £354m lost in the last year alone – most of it stolen from personal accounts.
This figure means that every month, £29.5m is lost to bank transfer fraud; that equates to £970,685 per day, £40,445 per hour, £674 per minute and £11 per second. Bank transfer scams can cost people their entire savings, with average losses to personal accounts of £2,920 – and ‘Which?’ regularly hears from victims whose lives have been thrown into chaos by the loss of much smaller sums.
Ahead of its launch, ‘Which?’ wrote to UK Finance demanding that the industry meets five tests that will determine the Code’s success. These are critical in ensuring progress towards the overall goal of finally halting bank transfer scams.
Which?’s five key tests:
1. Banks must promise to protect their customers by signing up to the Code with the regulator pledging to conduct a one-year review on its effectiveness.
2. The regulator must ensure all banks introduce vital name-check security (confirmation of payee) no later than its new deadline of March 2020. The latest delay will cost people an additional £109m in losses while they wait for this important measure.
3. No blameless scam victim should ever be denied reimbursement again, and full refunds should be issued swiftly.
4. Banks must show they are serious about protecting consumers by immediately agreeing a long-term funding solution for no blame refunds.
5. Banks must publish victim and reimbursement figures on a regular basis to allow effective monitoring in the fight against transfer fraud.
Gareth Shaw, Head of Money, Which?, said: “For too long, victims of bank transfer fraud have lost life-changing sums and subsequently faced a gruelling battle to get their money back.
“By adopting this code, banks must offer much greater protection to consumers, while quickly and fairly reimbursing those who are unfortunate enough to fall victim.
“Failure to do so will require swift intervention from the regulator, as these devastating scams can’t be allowed to derail lives any longer.”