MENA Newswire News Desk: Complaints of fraud and scams have surged to a six-year high, driven largely by a rise in online bank transfers used in investment scams. The Financial Ombudsman Service (FOS) reported receiving 8,734 complaints from consumers between April and June this year, marking a 43% increase compared to the same period in 2023. The FOS, which mediates disputes between consumers and financial institutions, noted this as the highest quarterly figure since it began tracking fraud data in 2018.
The increase in complaints is partly attributed to the proliferation of scams on social media platforms, particularly those where fraudsters demand payment via credit or debit cards. Pat Hurley, the FOS’s director for banking, noted that fraud tactics are constantly evolving. “Fraudsters’ methods are always changing, and this is reflected in the increasing number of cases we handle,” he said.
More than half of the complaints- 4,752 cases—were tied to authorised push payment (APP) scams, where victims are tricked into authorizing bank transfers to fraudsters. However, 2,734 of those cases were not covered under the voluntary code that offers additional protections, leaving many victims without the prospect of reimbursement unless under exceptional circumstances.
Banks have signed up to a voluntary code designed to reimburse victims in cases of fraud, though some banks operate their own fraud refund policies. One such institution, TSB, has its own fraud refund guarantee, providing additional safeguards to its customers. However, many cases still fall outside of this protection.
The data was published as reports surfaced that the Payment Systems Regulator is preparing to lower the maximum reimbursement limit for fraud victims from £415,000 to £85,000 under new rules expected to come into force soon. This reduction follows heavy lobbying by financial institutions. Abby Thomas, chief executive and ombudsman at the FOS, said the rise in complaints is concerning and urged victims to come forward. “It’s disappointing to see the number of complaints climbing even higher. No one should be afraid to report these crimes,” she stated.