Action against scams
Financial scams have become a major concern for banks, with Santander recently revealing that its UK customers lost £18.4m to fraudsters in the first quarter of this year. This is just one bank, and the total amount lost to scams in the UK is staggering.
According to the Global Anti-Scam Alliance, scams cost the UK £11.4bn in 2024, with the average victim losing £1,443. UK Finance data shows that over £1bn was lost to fraud in 2023, highlighting the prevalence of scams in the country.
In response to this growing problem, Santander has launched its Quarterly Scamtracker to keep customers informed about specific scams. Stop Scams UK has also announced a collaboration between banks, tech firms, and telecommunications companies to share data on fraud and develop strategies to protect consumers.
The Global Anti-Scam Alliance reported that 71% of Brits did not report scams in 2024, indicating a need for more awareness and reporting. Investment scams and shopping scams are on the rise, exploiting victims through various online platforms.
To combat this issue, banks are working with tech companies to share data and take action against scammers. Additionally, Innovate Finance has called for a national center to help businesses fight fraud through data sharing.
Payment fraud costs the UK economy at least £1.2bn annually, making it a significant economic issue. Banks are increasingly using technology, such as artificial intelligence, to help customers detect scams and protect themselves from fraudulent activities.
Metro Bank, for example, has introduced the Ask Silver AI scam detector platform, allowing customers to quickly check the legitimacy of suspicious communications. This proactive approach is essential in staying ahead of fraudsters and safeguarding customers’ finances.
