Fraud
Industry News
The report reveals both strong interventions and overlooked opportunities to prevent £106 million in losses during 2024.
Key insights include:
➡️ Scale of the Issue: Victims lost £106m in the past year and 85% of cases began online - primarily through social media and dating platforms;
➡️ Missed Red Flags: Firms frequently failed to identify suspicious transactions or probe customer explanations, with 42% of victims concealing the true payment reason when asked;
➡️ Monitoring & Training Gaps: Some monitoring systems were poorly calibrated, and staff training to spot behavioural red flags was inconsistent across firms;
➡️ Leadership Implications: Banks risk reputational and regulatory fallout if systems or training fall short, but those combining strong monitoring with compassionate engagement will stand out for customer-centric fraud prevention.
️➡️ FCA Recommendations: Enhanced monitoring, stronger staff training, early identification of vulnerable customers, and compassionate aftercare to rebuild trust post-fraud.
✅ Firms should review their fraud detection systems, enhancing staff training and strengthening monitoring where required to identify patterns of emotional manipulation and unusual payment activity.
