The number of fraud and scams cases has reached its highest quarterly level, data from the Financial Ombudsman Service (FOS) suggest.
The FOS reported on Wednesday it received 9,091 fraud and scam complaints between July and September, up from 6,264 cases in the same period last year. The preceding quarter, covering April to June, accounted for 8,734 complaints.
The FOS, which settles cases between consumers and financial services providers, said that out of the total number, 4,956 cases were linked to authorised push payment (APP) scams.
Commenting on the figures, FOS Chief Executive and Chief Ombudsman Abby Thomas said: “It’s concerning to see yet another rise in fraud and scams cases coming to our service. People can feel embarrassed to have fallen victim to a fraud or scam and may be reluctant to report the issue, but these crimes can be complex and incredibly convincing and nobody should be afraid to come forward.
“In recent years, as a result of our investigations into thousands of cases, more than £150 million has been returned to those who have fallen victim to a scam.
“If consumers have a dispute with their bank or finance provider they can come directly to our service, if they’re unhappy with how their complaint has been handled. Getting a fair answer is free and easy.”
The regulations cover many APP scams up to £415,000 with some exceptions, such as the payment being made abroad. A provider may refuse the reimbursement request, if the customer has been grossly negligent.
Complex Fraud Cases
The FOS reported a rise in the number of overall complaints between July and September 2024, when it recorded 73,692 complaints. This is up from 46,716 cases received in the same period in 2023–2024.The surge in complaints is partly down to the growing complexity of fraud and scam cases, the FOS said.
These include multi-stage frauds, cryptocurrency investment scams and “safe account” scams, where people fall victim to fraudsters posing as a trusted entity, such as their bank, and pushing consumers to transfer money to another account.
There was also an increase in e-money fraud, with 1,607 out of 2,196 e-money cases linked to scams.
Consumers complained they were tricked into transferring cryptocurrency to fraudsters, sometimes through multiple financial providers.
Pat Hurley, the FOS ombudsman director, has warned that scammers’ strategies are constantly evolving.
“Increasingly, we’re seeing more multi-stage frauds, where fraudsters encourage people to move money through different banks or other payment providers for ‘investment’ opportunities including cryptocurrency. Whilst the victim is promised amazing returns, in reality it’s actually a scam.
“We also continue to see traditional scams where criminals pose as an official body, such as a bank or the police, and ask consumers to move their money to a ‘safe’ account. If you’re called out of the blue, hang up the phone,” he said.
According to FOS data, the most complained about financial products were credit cards, hire purchase (motor), and current accounts.
The quarterly figures recorded a significant rise in complaints, including 22,366 new credit card cases and 9,186 current accounts cases. This compares to 4,505 credit card and 7,880 current accounts complaints in the same period last year.
Citizens Advice has urged consumers who have been impacted by a financial scam to report it to their bank or card company immediately, along with Action Fraud.
