[ad_1]
Complaints about fraud and scams have reached a six-year high, with half about bank transfers, according to the Financial Ombudsman Service (FOS).
Consumers lodged 8,734 cases between 1 April and 30 June, said the service – which resolves disputes between consumers and financial firms.
This represents a 43% increase on the same period in 2023. The quarterly figures are also the highest since the FOS started tracking data in 2018.
The FOS blamed several factors for the rise including:
• Growth in investment scams on social media where fraudsters demand payment by credit or debit card
• Consumers making multiple claims as funds pass through several banks before reaching the fraudster
• More online fraud cases being handled by companies who manage claims for consumers
Pat Hurley, ombudsman director for banking, said: “Fraudsters’ methods are always evolving, and we continue to see that reflected in the complaints brought to our service.”
Money blog: Popular European country cracks down on holiday rentals
More than half of the complaints (4,752) were linked to authorised push payment (APP) scams, when customers are tricked into approving an online bank transfer to a fraudster.
But 2,734 of those cases were not covered by a voluntary code, which provides additional protection for consumers and means they are reimbursed unless there are exceptional circumstances.
Many banks have signed up to the voluntary code. Some banks operate their own fraud refund guarantees, such as TSB.
‘No one should be afraid to come forward’
Around 49% of cases which fall under the code were upheld by the FOS.
Abby Thomas, chief executive and chief ombudsman of the FOS, said “it’s disappointing to see complaint levels rising to even higher levels”, adding “nobody should be afraid to come forward”.
“In recent years, we have investigated thousands of cases, returning more than £150m to those who have fallen victim to these crimes,” she said.
Read more from Sky News:
Labour in…
[ad_2]
