Fraud and scam complaints at highest level recorded, ombudsman says

The Financial Ombudsman Service (FOS) has reported a surge in fraud and scam complaints, reaching the highest quarterly level on record.

For the period between July and September, the service received 9,091 complaints, a significant rise from the 6,264 new cases recorded the same time last year. The previous quarter saw slightly fewer complaints, with 8,734 filed.

This recent quarter marks the most complaints since the records began in April 2018. Out of the latest figures, there were 4,956 complaints about authorised push payment (APP) scams, where victims are deceived into making payments to scammers. New rules implemented in October now mandate banks to reimburse victims of APP scams — a shift from when many banks adhered to a voluntary reimbursement code. .

The FOS has noticed that the complaints are becoming more complex, often involving "multi-stage frauds" where stolen funds are transferred across multiple banks before ending up with the fraudsters. Cryptocurrency investment scams and "safe account" scams—where fraudsters contacting individuals claim to represent reputable organisations and convince them to move funds—are particularly common, as noted by the service.

Abby Thomas, chief executive and chief ombudsman of the Financial Ombudsman Service (FOS), expressed concern over the increasing number of fraud and scam cases: "It’s concerning to see yet another rise in fraud and scams cases coming to our service. People can feel embarrassed to have fallen victim to a fraud or scam and may be reluctant to report the issue, but these crimes can be complex and incredibly convincing and nobody should be afraid to come forward."

She highlighted the success of their interventions, stating, "In recent years, as a result of our investigations into thousands of cases, more than £150 million has been returned to those who have fallen victim to a scam."

Ms Thomas also encouraged consumers to approach the FOS if they are dissatisfied with how their financial disputes are handled, saying: "If consumers have a dispute with their bank or finance provider they can come directly to our service, if they’re unhappy with how their complaint has been handled. Getting a fair answer is free and easy."