The Financial Ombudsman Service (FOS) has said Banks should not automatically assume customers are at fault when they have fallen victim to a scam.
Caroline Wayman, Chief Executive of the (FOS) said “Today, it’s often loopholes in new technologies, rather than in old ones, that fraudsters are using to their advantage. Your first step toward being scammed may be putting your details into an identical, but fake banking website – or responding to a text message that, on the face of it, looks like it’s from your bank.”
“If people are targeted by sophisticated scammers it is not fair to automatically call a customer grossly negligent simply because they’ve fallen for a scam. We often remind banks that they need to support what they’re saying with facts. And if they can’t do that, it’s likely we’ll tell them to cover the money their customer has lost.”
FOS deals with more than 8,000 cases each year involving fraud and scams, including identity theft, fake banking websites and disputed cash withdrawals from ATMs.
Responding to the Financial Ombudsman Service’s fraud and scams report, Katy Worobec, Managing Director of Economic Crime at UK Finance, said: Banks and building societies take the threat of fraud extremely serious and invest millions in advanced fraud prevention systems to protect customers, stopping £2 out of every £3 of attempted fraud last year. But we know there is more to be done.”
“Banks will always make every effort to help a customer recover any stolen funds and the industry has introduced new standards on how banks respond to scam victims. At the same time our Take Five to Stop Fraud campaign is giving people the knowledge they need to stay safe and we are working with the Joint Fraud Taskforce to deter and disrupt the criminals responsible for these scams.”