There were 9,091 complaints in the three-month period, compared to the 6,264 complaints received by the dispute service at the same time in 2023.
It also marks a steady increase from the previous quarter, when 8,734 complaints were lodged.
Authorised push payment (APP) scams continued to be a growing issue, with 4,956 cases regarding those types of scams.
This is when fraudsters trick a customer into transferring money to them while purporting to be from a legitimate trusted company or service. Those scams can be in the form of purchase, investment and impersonation scams.
It follows an annual survey from Cifas and the Global Anti Scam Alliance that found victims of scams lost an average of £1,400 – totalling £11.4bn in the UK. Of the survey’s respondents, one in seven UK adults said they had lost cash to fraudsters this year.
Wellness and wellbeing holidays: Travel insurance is essential for your peace of mind
Out of the pandemic lockdowns, there’s a greater emphasis on wellbeing and wellness, with
Sponsored by Post Office
Before legislation changed in October, banks were responsible as part of the ‘contingent reimbursement model’ to refund customers who’ve been scammed.
After the Payment Systems Regulator (PSR) introduced new rules, banks are now required to repay victims of APP scams within five days.
There is a limit of £85,000 for each refund, after which victims can escalate a complaint to the FOS.
The reason for the rise in scam and fraud complaints was due to multi-stage frauds, which are often involved with cryptocurrency investment scams.
Multi-fraud scams often involve e-money accounts, and of the 2,196 cases about this type of account, 1,607 were about being scammed.
The FOS noted that, in some cases, criminals involved in cryptocurrency investment scams would often urge victims to open an e-money account so they can take the money from the recipient.
Overall, there were 73,692 new complaints sent to the ombudsman to investigate, which is over 50% more than in July to September 2023, when 46,716 were received.
‘Scammers’ strategies are always evolving’
Pat Hurley, ombudsman director at the FOS, said: “Scammers’ strategies are always evolving and they’re constantly looking for new ways to defraud people.
“Increasingly, we’re seeing more multi-stage frauds, where fraudsters encourage people to move money through different banks or other payment providers for ‘investment’ opportunities including cryptocurrency. Whilst the victim is promised amazing returns, in reality it’s actually a scam.”
Hurley added: “We also continue to see traditional scams where criminals pose as an official body, such as a bank or the police, and ask consumers to move their money to a ‘safe’ account. If you’re called out of the blue, hang up the phone.”
Rocio Concha, Which?’s director of policy and advocacy, said: “These figures are of huge concern and reinforce the critical role the Financial Ombudsman Service plays in providing consumers with effective redress – at a time when sections of the industry are attempting to reform the ombudsman’s role.
“The rise in complaints about fraud is particularly concerning and some suggest that some banks and payment providers are not treating customers fairly. Consumers that invest in cryptocurrencies should know they are putting money in unregulated schemes and could lose all their money should something go wrong.”
Concha added: “Which? has led the campaign for stronger, mandatory protections, which will ensure bank transfer fraud victims are reimbursed in the vast majority of cases. This should lead to fewer complaints for the ombudsman to deal with. Firms found to be failing to apply these new protections should expect to face tough enforcement action.”
