FOS issues warning on the dramatic rise in fraud and scams

The Financial Ombudsman Service has seen a significant rise in fraud and scam complaints and warns customers to be extra vigilant.

According to its latest Ombudsman News (Issue 164), the number of customers asking the FOS for help with fraud and scam complaints increased by 66% in the first quarter of the 2021/22 financial year, going up to 5,025 cases compared with 3,028 in the same period during the previous year.

Cases include problems caused by fraudsters posing as a customer’s bank and consumers being scammed by paying for goods via a bank transfer but not subsequently receiving what they paid for. The FOS also saw an increase in complaints about fraud and scams involving cryptocurrencies.

The FOS also reports that for the first time in over a decade, current accounts were the most complained about product, with consumers bringing 6,911 complaints. This is an increase of 55% compared to the same period last year. Complaints about credit cards and car insurance were other areas where the FOS saw high numbers of complaints.