Huge rise in bank fraud sees £500 million stolen in the first 6 months of 2018!

by Simon Kelman

New figures have shown that more than £500m has been stolen from customers of British banks in the first half of 2018.

Bank Fraud

Bank fraud is split into two sections, the first is unauthorised fraud, which includes transactions made without account holders' knowledge.

The second is authorised push payment (APP) scams, in which people are conned into sending money to another account. Industry group UK Finance saying that as much as £145million was lost to this type of fraud in the first 6 months of this year.

Whilst unauthorised fraud victims are often refunded by their banks, victims of authorised push payment (APP) fraud are unlikely to recover any of their losses. The reason they are unlikely to be compensated for this is because current legislation means you are liable for any losses incurred if you authorise the payment.

For example, this applies to so called "Purchase scams", this is when an individual is scammed into transferring funds for a products or service that does not exist.

These scams often take place online, and include payments made for holiday rentals, high end electronics and even cars or property, that do not exist or have been stolen.

How can HooYu help to protect you against fraud APP Fraud?

HooYu prevents you from becoming a victim of authorised push payment (APP) fraud by helping you verify who you are dealing with is genuine.

As more of us embrace services like AirBnB, Gumtree and Facebook Marketplace more fraudsters will take advantage of the anonymity these services are able to offer them. But you can avoid falling victim of these scams if you take some added precautions. 

A HooYu request enables you to verify who you are dealing with is who they say they are, it takes just a couple of minutes and is done purely online with no hassle to either party. Meaning you can quickly confirm that the person offering the accommodation, phone, car or apartment is who they say they are.

Authorised push payment fraud relies on the anonymity of the fraudster and the ability to convince someone to transfer money out of their account without any questions. HooYu enables you to ask a question that fraudsters won’t answer but genuine sellers will be happy to, giving you the confidence to continue the transaction.

Simon Kelman