House of Commons Public Accounts Committee reports on growing threat of online fraud

Industry News | 07/12/17

The House of Commons Public Accounts Committee has published its sixth report of the 2016-17 parliamentary session, on the growing threat of online fraud. The committee finds that banks do not accept enough responsibility for preventing and reducing online fraud. The protection they provide is variable and some are keener to invest in educating customers and anti-fraud technology than others. It considers that shifting more responsibility onto banks for scams is likely to make them better at protecting customers. There is scope for more transparency over individual banks’ performance. There is also scope for banks to provide more help to vulnerable people, such as putting restrictions on their bank accounts. The committee stated that unless all banks start working together, including making better use of technology, there will be little progress on tackling card fraud and returning money to customers. Card not present fraud, where criminals use stolen card details, has been rising dramatically in recent years. Between 40% and 70% of victims never get their money back, and banks have different policies to determine whether they will refund money.