Fraudsters steal £3m a day as cases rise

Published On Oct 17, 2024, 7:01 PM

Fraud cases in the UK have surged by 16%, with criminals stealing over £3 million daily. Despite a rise in reported cases, total losses fell slightly to £572 million in the first half of the year. Banks are facing challenges as fraudsters exploit weaknesses, particularly by tricking victims into revealing one-time passcodes. New regulations that took effect on October 7 require banks to refund victims of APP fraud up to £85,000 within five days, indicating increased pressure on financial institutions to enhance security. The rise in fraud and the potential risk to customers have prompted banks to call for more support in tackling this crime.

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As fraud cases continue to rise, financial institutions might see increased costs related to fraud management and compensation claims. However, the addition of strict regulations like mandatory refunds may also strengthen consumer trust in these banks, potentially leading to increased business. Investors may consider stocks of banks that are well-prepared to handle these regulations and those that position themselves as leaders in security and fraud prevention.

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