FCA warns corporations to do extra to guard shoppers from fraud

The UK Monetary Conduct Authority (FCA) right this moment printed key findings of a evaluation of corporations’ fraud controls and grievance dealing with.

Whereas the evaluation discovered examples of fine apply, the regulator was additionally disenchanted with the way in which some corporations supported clients who have been the victims of fraud.

Within the first six months of 2023 over 116,000 folks reported falling sufferer to APP fraud, the place somebody is tricked into sending cash to a fraudster posing as a real payee. With extra folks probably weak as a consequence of cost-of-living pressures, and fraud strategies evolving, it’s essential that corporations regularly consider their method and have sturdy frameworks in place to detect fraud, in addition to efficient help for victims when it occurs.

The evaluation discovered:

  • Corporations can do extra to strengthen their techniques designed to detect and forestall fraud.
  • There’s not sufficient concentrate on delivering good shopper outcomes in lots of corporations.
  • Some corporations might do extra to enhance the help they provide to victims of fraud.
  • Poor grievance dealing with, together with corporations usually taking too lengthy to reply. Prospects have been supplied with determination letters that have been typically unclear, complicated, or included unhelpful and, every so often, accusatory language.
  • Corporations are usually not absolutely contemplating traits of buyer vulnerability when making choices about fraud claims and complaints.

The FCA is already working with corporations in its evaluation to strengthen their method. The regulator expects all cost service suppliers to make use of the findings to tell what extra they’ll do to detect, handle and cut back fraud and losses extra successfully. Buyer therapy should even be improved, together with how complaints are dealt with, to ship constantly good shopper outcomes consistent with the Shopper Obligation.

Combating monetary crime is a key precedence within the FCA technique and it has plenty of instruments to sort out it, together with; being robust on the gateway, taking assertive supervision and enforcement actions and speaking straight with shoppers by way of the ScamSmart marketing campaign to warn them of the dangers of fraud.