Bank customer lose thousands of pounds to scams

Bank Customers Advised To Follow The Voluntary Code To Avoid Fund Loss In Scams

About 4.6m cases of scams were reported in the year up to March 2021, and the number continues to increase. Most bank customers felt they were exposed to risks and were not supported by the financial organisations. 

In authorised bank transfers called APP, the customers do not have legal protection to claim a reimbursement for a loss. Therefore, the banks advised their customers to follow safety measures and not disclose passwords or PINs to anyone. 

In addition, they have been asked not to assume that emails or phone calls are reliable or make payments in a rush. 

Some people reported the fraud on the phone to their banks or through web chat. Some fell for recovery frauds and were tricked into believing someone could help them regain their lost money for a fee. 

In one case, a man impersonating a police officer conned an older adult to transfer money into his account. Such incidents have a long-term impact on the customers who seek information and protection from banks. 

In general, the customers lost £74 million in 2018 through authorised fund transfers for non–existent goods or services. These were purchase scams where the caller impersonated a representative from a reputable financial institution or a law firm, and he requested payment from the client. 

In 2018, banks reimbursed those who lost to such frauds. However, a voluntary code was later introduced where people who did not meet the expected standards could not get a refund. In addition, the banks have been authorised to refuse a refund for the customers' negligence. 

How To Protect Yourself?

• The banks have advised customers to make sure they deal with someone they know. If unsure, call the bank or the police from a different phone number. Use phone numbers owned by other family members to call them to confirm the request.

• The security questions asked by different banks can differ, but they never ask the customers to authorise by entering the PIN on the phone. 

• Do not transfer money to someone you do not know, and inform such calls to friends and family.