Julie, a resident of Devon, experienced a devastating loss of £3,900 when fraudsters impersonated her bank. In an effort to report the incident to HSBC, she spent seven hours on hold, leading to a £50 phone bill. The wait was so prolonged that her landline provider temporarily disconnected her service.
It took four days for HSBC to reach out to her after the scam, informing her that she would be refunded. Disappointed by the bank’s lack of support, Julie decided to change banks. She expressed her concerns, stating, “I don’t blame HSBC for the scammers, but it was completely inaccessible by phone. I was terrified because I didn’t know what information the scammers had got… I didn’t know whether they could get hold of my card details or anything else from my laptop.”
Julie’s experience reflects a broader issue, as recent research from consumer watchdog Which? indicates that many customers face inadequate treatment from their banks after fraud incidents, leaving them vulnerable to further scams. Among those who reported fraud via phone or webchat, 15% reported waiting 30 minutes or longer to connect with someone.
Additionally, Which? found that a third of those affected by fraud felt their bank did not provide sufficient advice or resources to help them avoid further incidents. Concerns about ‘recovery fraud,’ where victims are targeted again by scammers posing as helpers, are on the rise, with a 39% increase in this type of crime since last year. Victims of recovery fraud have reported average losses of £14,408.
While most major banks have committed to a voluntary reimbursement code for bank transfer scams, which mandates reimbursement for customers not at fault and requires adequate support, there have been criticisms regarding the quality of that support. A report by the Lending Standards Board (LSB) revealed that some firms failed to respond to reimbursement claims within the stipulated 15 days, or 35 days in exceptional cases, and often did not update customers about delays.
In light of these issues, the LSB has urged greater transparency in how banks handle fraud cases, allowing customers to see how their bank responds to victims. Jenny Ross, Which? Money Editor, emphasized the severe impact fraud can have. She noted, “When banks fail to offer proper support, it can make a nightmare situation even worse, and the absence of information on how to protect oneself could result in scammers striking again. The lack of assistance for victims of bank transfer scams is particularly concerning, and stronger protections against this type of fraud are essential.”