The Nationwide Building Society is launching a scam checker service today that it hopes will help protect customers from losing money to criminals it can reveal money.
Britain’s largest mutual says it hopes the move will help customers fall victim to authorized push payment scams, where customers pay money directly to criminals after being socially engineered.
This can often range from a fraudster pretending to be from a bank’s fraud team and tricking the victim into making payments into a ‘secured account’.
New service: Nationwide says anyone given the green light to pay what later turns out to be a scam will be refunded in full
According to UK Finance data, fraud losses rose 30 percent to more than £750 million in the first half of the year due to rising APP scams.
The biggest increase in APP fraud losses came in the form of impersonation scams, which more than doubled to £129.3 million due in large part to criminals stealing from people under the pretext of police officers and bank employees, the industry body said. he said.
Nationwide’s new service enables a customer to check the payment they are concerned about either at the branch or by telephone a dedicated free phone number.
This will be manned by a trained fraud team that will respond directly, telling Nationwide that calls must be picked up within minutes – often with significant time in this type of case.
Staff will talk to the customer about the nature of the payment and discuss any concerns before proceeding.
Its own data suggests that talking to a staff member before making a payment can help identify and prevent two-thirds of attempted scams each year.
Nationwide says anyone who falls victim to an APP scam after being given the green light will be refunded in full under a new guarantee.
However, it adds that if someone is warned against making a payment through the new service and they proceed, or if they fail to share key information needed to assess the payment, the guarantee will apply. Won’t happen.
In these cases, it claims that any APP scam refunds will still be made on a case-by-case basis, in line with the Contingent Reimbursement Model Code, considering factors such as vulnerability and the nature of the scam.
Nationwide Economic Offenses Director Stuart Skinner explained that it is money that the new service will work with existing fraud and scam prevention measures.
This involves checking the name matching the details of the new payee account using the recipient’s confirmation.
When customers pay online or through its app, they will still receive scam warnings and guidance.
Nationwide chief executive Joe Garner – who announced his exit last week – said – ‘Success is not just ensuring reimbursement to victims – but also preventing these crimes in the first place.
‘We are also calling on the big tech, telecommunications and social media companies that host these crimes to take more responsibility for preventing them. We should work better together in mutual interest to fight this criminal activity.
UK Finance believes the scale of fraud has become so great that the problem is now a ‘threat to national security’ and said the banking industry cannot tackle the problem on its own.
Katie Vorobeck, managing director of economic crime at UK Finance, said: ‘The banking and finance industry invests billions in advanced systems to try and prevent fraud from occurring in the first place, but from the control of banks to trick delinquent customers. Taking advantage of weaknesses outside. to pay them directly.
‘That is why we are calling for coordinated action and increasing efforts from the government and other sectors to tackle what is now a national security threat.’