Bank branch response scheme prevents victims losing £38m to fraud in 2018

Modern-day hackers use sophisticated mechanisms to enter digital banking systems to defraud bank customers and steal their assets. Victims who lost money through account-to-account transfers to unsolicited callers claim the incident changed their lives. 

They were devastated after losing money, and many did not report it to the investigation officials. They did not even narrate it to their close friends. 

Criminals involved in such actions hide their intentions and operation strategies in the digital world, and people are deceived daily by such fraudsters. 

One victim said the caller persuaded her to believe she was helping police in a money-laundering case, and she agreed to transfer funds from her Santander account to theirs. She stated the caller manipulated her to act entirely out of character. 

She gave bogus reasons to the bank officials when they asked why she withdrew or transferred the money into anonymous accounts. 

People living alone and over their 70s are most susceptible to such crimes. At certain times, they indulge in irrational reflex responses due to fear and anxiety and are manipulated by the crooks. 

• In the last few years, such incidents increased by 22 per cent as criminals took advantage of the lockdowns. The UK FTA stats show £479mn was lost in APP frauds, while the psychological impact was incomprehensible. Many are embarrassed and left broke. 

• In addition, the reports found that customers who lost in such schemes, many of whom were refunded by the financial organisations, depicted a sense of shame during investigations. The callers use the spoofed untraceable numbers of reputable firms, and people who lose are consumed with guilt. 

• The banking industry has partnered with law enforcement to crack down on the criminals responsible for such actions. The banking protocol response scheme aims to identify any such risks, and in 2018, it prevented a loss of over £38m and led to the arrest of 231 fraudsters. 

• The protocol guides the staff to spot those about to fall victim and prevent them from withdrawing funds. The figures reveal the scheme prevented £48m in such scams in 2016 – when it was introduced, the scheme's adoption continues to grow where the average age of the clients was 71 years.

• The government started campaigns to help people by alerting them to the signs. The financial firms' employees have been asked to get training to treat customers who suffered losses with the required sensitivity. 

The organisations have been asked to take responsibility and reimburse the customers. The new guidance of the FCA wants the customer service system to adopt flexible methods to reduce customers' stress and confusion, and it advises the staff to identify the most vulnerable group to support them in the best ways. 

The employees identify the transactions that target vulnerable customers, and the rapid response of the staff protects the client from losing money. They also help the local police identify the fraudster gangs. 

Such scams target the most vulnerable, who are left isolated and alone. So the fight against it starts on the ground, and the organisations have been offered guidelines to spot and look out for and spot the signs of scams instantly. 

The investigators said banks should be commended for spotting and averting crimes. If they see anyone drawing a large amount of money, they should ask questions, and they can invoke the protocol and communicate with the local police.