Brits are being warned to be extra vigilant about the threat from fraudsters and scammers, following a significant rise in cases seen by the Financial Ombudsman Service (FOS) over the last year.
The number of customers asking the FOS for help with fraud and scam complaints increased by 66% in the first quarter of the 2021/22 financial year to 5,025 cases, this is compared with 3,028 in the same period during the previous year.
Over that period, 60% of fraud and scam complaints were upheld by the ombudsman, compared with 50% the previous year.
The FOS data shows that fraud and scam cases continue to be one of the main drivers of complaints to the ombudsman.
Cases include:
- Problems caused by fraudsters posing as a customer’s bank and convincing them to move their money to a fake ‘safe account’; and,
- Consumers being scammed by paying for goods via a bank transfer but not subsequently receiving what they paid for.
Crypto
The FOS also saw an increase in complaints about cryptocurrencies during the pandemic.
While these are unregulated investments, the ombudsman service can look into complaints about the banking providers who refuse to reimburse consumers who feel they’ve been a victim of a cryptocurrency fraud or scam.
The ombudsman said that evidence suggests the increase in complaints about cryptocurrency could be in part driven by social media-based scams.
Nausicaa Delfas, FOS interim chief executive and chief ombudsman, said: “It’s a real concern that we are seeing such an increase in scams. It’s vital that people take extra care with their finances, as unfortunately fraudsters are becoming increasingly sophisticated.
“If people feel they have not been treated fairly by their banks, we are here to help.
