Nationwide Building Society is launching a scam checking service today that it hopes will help further protect customers from losing money to criminals, This is Money may reveal.
Britain’s largest mutual is hoping the move will help customers avoid authorized push payment scams, where customers transfer money directly to criminals after being socially manipulated.
This can often be from a scammer pretending to be a bank fraud team and trick the victim into making a payment to a “secure account”.
New service: Nationwide says anyone greenlighted to make a payment that later turns out to be a scam will be fully refunded
Fraud losses climbed 30% in the first half of the year to over £ 750million, with rising app scams driving the surge, according to data from UK Finance.
The biggest growth in APP fraud losses came in the form of identity theft scams, which more than doubled to £ 129.3million, largely due to criminals stealing from people by posing as police and bank workers, the industry body said.
Nationwide’s new service allows a customer to verify a payment that worries them either at a branch or by calling a dedicated toll-free number.
This will consist of a qualified fraud team who will respond directly, with Nationwide indicating that the call must be taken within minutes – time is often crucial in this type of case.
Staff will discuss the nature of the payment with the customer and discuss if there are any concerns before proceeding.
Its own data suggests that talking to a staff member before making a payment could help identify and stop up to two-thirds of scam attempts each year.
Nationwide says anyone who falls victim to APP scam after getting green light will be fully reimbursed under new warranty
However, he adds that if, through the new service, someone is cautioned against a payment and proceeds, or if they do not share the important information required to assess the payment, the guarantee will fail. ‘will not apply.
In these cases, it claims that any APP fraudulent refunds will always be made on a case-by-case basis according to the conditional refund model code, taking into account factors such as vulnerability and the nature of the scam.
Stuart Skinner, director of economic crime at Nationwide, told This is Money that the new service will work alongside existing fraud and scam prevention measures.
This includes verifying that the name matches the details of a new payee account using the payee confirmation.
Customers will also receive scam warnings and tips when making payments online or through its app.
Joe Garner, chief executive of Nationwide – who announced his departure last week – added that “Success is not just about securing reimbursement for victims – but also preventing these crimes from happening in the first place.
“We also call on the big tech, telecommunications and social media companies that host these crimes to take more responsibility for stopping them. We need to work better together for the mutual benefit of combating this criminal activity.
UK Finance believes the scale of fraud is now so large that the problem is now a “threat to national security” and has said the banking industry cannot tackle the problem alone.
Katy Worobec, Managing Director of Economic Crime at UK Finance, said: “The banking and financial industry invests billions in advanced systems to try to prevent fraud, but criminals exploit weaknesses beyond the banks’ control to deceive customers. to make payments to them directly.
“We therefore call for coordinated action and increased efforts by government and other sectors to tackle what is now a threat to national security.”
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