The organization, which settles complaints between customers and financial businesses, reported that 8,734 claims were filed by consumers between April 1 and June 30.
Comparing this to the same time in 2023, there has been a 43% increase. Additionally, the quarterly numbers were the highest since the FOS began collecting statistics in 2018.
The FOS attributed the increase to a number of causes, including:
- An increase in investment fraud on social media, when con artists seek credit or debit card payments
- Customers filing many claims as their money moves through multiple institutions before being obtained by the scammer
- A greater number of internet fraud cases are being managed by consumer claims management firms
“Fraudsters’ methods are always evolving, and we continue to see that reflected in the complaints brought to our service,” stated Pat Hurley, the director of the banking ombudsman.
Over half (4,752) of the complaints had a connection to authorised push payment (APP) scams, in which victims are duped into giving a fraudster permission to send money online.
However, 2,734 of those situations were not covered by a voluntary code, which gives customers more security and guarantees their reimbursement barring extraordinary circumstances.
Numerous banks have ratified the voluntary code. Certain banks, like TSB, run their own fraud refund guarantees.
