This month, three major announcements show that financial scams are reaching a critical level, and banks are stepping up their efforts to combat them.
Last week, Santander revealed that its UK customers lost £18.4 million to fraudsters in just the first three months of this year. And that’s just one bank in one country. Scams are a massive issue, costing the UK economy £11.4 billion in 2024 alone, which is about 0.4% of the entire GDP. On average, each victim loses around £1,443. According to UK Finance, over £1 billion was lost to all types of fraud in 2023, with scams making up 40% of all crimes in the UK. A staggering 76% of authorised push payment fraud starts online.
Santander’s commitment to sharing these figures shows how serious they are about tackling scams. Their first Scamtracker not only raises awareness but also highlights specific scams, including one involving fake Sports Direct ads. Meanwhile, Stop Scams UK announced that banks and tech companies are joining forces to share data on fraud. Big names like HSBC, NatWest, Amazon, and Google are part of this initiative.
They stated, “Fraudsters jump across channels as they entice and snare their victims, but most organizations can’t see what’s happening to block it. By sharing intelligence and developing clear communication strategies, we can better protect consumers.”
Despite these efforts, many victims don’t report scams. A recent report noted that 71% of Brits didn’t report scams in 2024—an increase from the previous year. Shopping scams are still the most reported, but investment scams are on the rise, often exploiting victims through credit cards and online payment methods. Banks can’t solve this issue alone. Tech companies are also stepping up, agreeing to share data to fight against scams.
UK fintech trade body Innovate Finance has called for government support to establish a national center aimed at helping businesses combat fraud. CEO Janine Hirt pointed out that while fraud makes up over 40% of crime, it receives less than 1% of police resources. She advocates for a more collaborative approach to tackle this pervasive problem effectively.
The government should care about cutting scams, as it impacts not only victims but also the entire UK economy. Innovate Finance estimates that payment fraud alone costs the economy at least £1.2 billion each year. An IT professional in the banking sector shared that banks recognize scams as a significant threat, often reimbursing customers even when they aren’t at fault.
“This means banks can’t fully control these losses since they rely on customer behavior and regulations,” they explained. “The focus has to be on educating customers and spotting scams ahead of losses.”
Collaboration between banks and online retailers is a positive move, and there’s hope that government agencies can join in. The increased emphasis on cybersecurity measures by banks is clear, with more alerts appearing during online transactions.
Metro Bank is taking action by using AI to help customers spot scams. Their Ask Silver platform lets customers check whether suspicious emails, websites, or messages are fraudulent in just minutes. Customers can send a photo or screenshot via WhatsApp, and the AI provides rapid feedback on their risk status.
Baz Thompson, head of fraud at Metro Bank, emphasized their commitment to customer security, acknowledging that scammers often exploit urgency. To help customers stay safe, they’re offering a service that quickly verifies whether a potential scam is legitimate.
