Bank Scams Are Causing Fraud To Increase
Banking scams have hit the UKs financial industry; this has caused fraud rates to rise by 26%. The biggest contributor to this was remote fraud which has cost the UK consumer £168 million in 2015.
Financial fraud is rising
In 2015 £755 million was stolen from financial institutions and British consumers.
The methods adopted by fraudsters are becoming increasingly smart. They are starting to target people directly as a result of financial institutions tightening up their security measures.
Attempts have been made by various organizations and companies to alert the public to new scams adopted by fraudsters. The advice giving out is to remain vigilant and do not give out personal details unless you are 100% certain to whom you are speaking.
Despite these measures, fraud is still continuing to rise.
Fraudsters will pretend to be bank staff, police officers, or even representatives from various companies. They will contact you directly to either obtain your bank details or encourage you to send money to them.
This type of fraud has become a gray area in the industry, and banks have been known to refuse refunds on the basis that victims handed over their details voluntarily. Victims of this type of fraud have also reported that the police have also shown little interest.
There has been a 64% rise in internet banking fraud and a 92% rise in telephone banking.
Other areas of fraud
In 2015 –
• Card fraud rose by 18% to £567 million
• Cheque fraud fell by 6% with a total of £18.9 million reported lost
• There was also a reported 2.8 million lost toward mobile banking
• Card companies and banks successfully prevented a total of £843.6 million.
What is going to be done to talk financial fraud?
The UK in February announced the creation of a new task force to tackle fraud.
The taskforce will include representatives from the police, the government, and the banking industry.
Despite the announcement of the new task force consumer confidence has been damaged. When you take into considerations that victims get a reply of “we are helpless, or we cannot rectify the problem” by the police or by bank staff then this it’s not surprising.
How to prevent fraud
There are steps which you can take to lessen the risk of being a victim of fraud –
• Remain alert – there is an increase of fraudsters who are imitating Government and company officials
• Do your research – if you are unsure about a phone call, email, or letter you have received then look online, people are sharing their stories and companies also regularly issue warnings
• Be care with payments – be wary of those who demand you pay upfront or want you to use companies such as Money Gram to send them money, legitimate companies and Government organizations will not require you to pay them in this way
• Do not rush yourself – it’s a common tactic among fraudster to rush you or demand you give them an immediate answer, do not allow yourself to feel pressured, take your time and make informed decisions
These are just a few steps you can take to keep yourself safe. New scams are operating all the time, so it is crucial that you safeguard yourself and keep an eye out for fraud alerts.