Fraud cases forecasted to increase

The Financial Ombudsman Service (FOS) anticipates that fraud and scams will constitute 35% of its banking and loan cases in the 2025/26 financial year, translating to over 37,000 complaints. This marks an increase from the projected 33,000 cases by the end of the current financial year.

FOS also expects to handle around 240,000 new complaints overall, noting that it will resolve around 270,000 cases next year, with this made up of both new complaints and older disputes.

Abby Thomas, Chief Executive and Chief Ombudsman said “It’s concerning to see high levels of fraud and scams cases continue to come to our service. People can feel embarrassed to have fallen victim to a fraud or scam, but these crimes can be complex and incredibly convincing, and nobody should be afraid to come forward.

“No matter how difficult a case may be, people can come with confidence to our free, independent service and we’ll investigate their complaint.”

Separately FOS has projected likely caseload levels of around 240,000 new complaints. FOS has also launched a joint Call for Input with the Financial Conduct Authority (FCA) looking at how to modernise the redress framework to ensure it is fit for the future. It says that whilst the current system works well for individual complaints about specific issues, sudden and significant increases in complaints can cause firms to struggle to effectively respond, delaying any customer redress that may be due. The Call for Input is seeking views on how to prevent financial issues leading to a spike in complaints and creating uncertainty for firms and their customers.

Thomas added “We are transforming our service to meet the needs of consumers and businesses. Thanks to our digital transformation and improved performance, caseworkers are now resolving 18% more customer complaints per head than last year, without compromising on quality.

“I also want to seize this opportunity to modernise the redress framework and ensure our service remains vital and relevant not only for today, but also continues to underpin confidence in financial services for the next generation of consumers and businesses.”