You are here: Home - Saving-Banking - News -

Banks told not to blame scam victims

0
Written by:
22/08/2018
Banks have been told not to blame customers who fall victim to fraud and scams.

The Financial Ombudsman Service (FOS) said banks regularly used the excuse that customers were “grossly negligent” as a reason not to refund their money.

But the ombudsman service said there was “a very high bar” for being grossly negligent because scams are becoming more sophisticated and difficult to spot.

Caroline Wayman, chief executive of the Financial Ombudsman Service, said: “Each year we see more than 8,000 cases involving fraud and scams – everything from disputed cash withdrawals and identity theft, through to mobile phone SIM-swaps and fake banking websites. And where criminals are involved, both banks and their customers often tell us in strong terms that they haven’t done anything wrong.

“But it’s not fair to automatically call a customer grossly negligent simply because they’ve fallen for a scam. That’s especially true in light of the sophisticated way criminals exploit banks’ security systems – and convince customers that their money is at risk.”

In one example, a customer called Brian contacted the FOS after his bank refused to refund him money that was stolen from his account in a text message scam.

The bank said because he’d given out his security details he had been grossly negligent, so it wouldn’t refund him the £7,000 he’d lost.

But the FOS reviewed his case and said it was a sophisticated fraud so told the bank to reimburse him the full amount.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week