Fraud & scam complaints reach six-year high at FOS

According to the Financial Ombudsman Service (FOS), complaints about fraud and scams have surged to a six-year high, with half of these complaints involving bank transfers. Specifically, more than half of the complaints, totalling 4,752, were related to authorised push payment (APP) scams, where customers are deceived into authorising an online bank transfer to fraudsters.

In an economy increasingly reliant on mobile devices, the surge in mobile-based bank transfers has led to heightened consumer anxiety about potential fraud. Jack Kerr, Director of Appdome, commented on the growing issue, noting the role of sophisticated tools utilised by cybercriminals.

Kerr stated, "The rise in mobile fraud is powered by the ever-growing sophistication of tools cybercriminals have at their disposal. The almost universal use of mobile banking and social media means that these and other mobile apps have become prime targets for scammers, where social engineering attacks, like vishing (voice phishing), are regularly being used to exploit and target unsuspecting users."

While voluntary codes offer some degree of protection against APP scams, Kerr emphasised that more action needs to be taken to address these escalating threats. He explained that mobile brands must ensure they have robust security and anti-fraud measures integrated into their mobile applications to safeguard consumers effectively. "For these to truly work, protections must be automated and operate in real-time rather than applying a band-aid approach," Kerr added. "This way, brands can continuously detect, block, and intervene when social engineering attacks attempt to exploit user trust."

Kerr also highlighted the growing demand from consumers for increased security measures. According to a recent survey conducted by Appdome, nearly all (99.5%) of the 25,000 mobile consumers surveyed demand comprehensive protection in their mobile apps and hold mobile app developers accountable for ensuring their safety. "Mobile brands need to respond to pressures from consumers, who are growing increasingly security-conscious," Kerr said.

He further elaborated, "By prioritising mobile app security and fraud protections, organisations can not only meet regulatory standards but also ensure safer banking experiences and foster greater loyalty with their customers."