In a proactive move to tackle the ever-evolving landscape of financial fraud, Barclays has introduced a monthly ‘Scams Bulletin.’ This initiative aims to keep consumers informed about emerging trends in criminal fraud tactics, thereby helping them to safeguard their funds. The Bulletin provides a comprehensive overview of claims made across all Barclays personal and business current accounts, highlighting emerging trends and offering advice on how to detect and prevent scams.
Monitoring Emerging Trends
The inaugural edition of the Bulletin presents a detailed comparison of data from January through April 2024. Notably, it reports a significant decline in the total value and volume of scam claims, which fell by 15.7% and 7.1%, respectively, between March-April and January-February. This downward trend suggests that Barclays’ efforts to educate consumers are bearing fruit, but it also underscores the need for continuous vigilance.
Types of Scams on the Rise
Despite the overall decrease, certain types of scams have seen an uptick. Invoice and mandate scams, in particular, have become more prevalent. These scams involve fraudsters sending fake invoices to businesses, often with convincing details that can easily deceive recipients. Kirsty Adams, a fraud and scams expert at Barclays, notes the increasing sophistication of these scams. She advises, “It is always worth double-checking invoice and payment details against a previous invoice and, if in any doubt, verify the details or amount with a known contact from the business over the phone.”
Age-specific Vulnerabilities
The data reveals a worrying trend among older adults, particularly those aged 61-70, who have seen the proportion of claims against invoice and mandate scams double. The average claim for this age group stands at £12,000, marking a 24.6% increase over previous months. This highlights the need for targeted educational efforts to protect vulnerable demographics from sophisticated scams.
The Role of Text and Messaging Apps
Scams conducted via text or messaging apps accounted for 8.2% of all scam claims in March-April 2024, a slight decrease from the 8.5% reported in January-February. While these scams represent a smaller share of the total value of claims, the average loss remains substantial at £2,100. Adams emphasizes the need for caution, stating, “There’s a risk people will assume that because someone has their number, they’re getting in touch with a genuine request. If you receive an unsolicited message requesting money, that should set alarm bells ringing.”
Decrease in Impersonation Scams
On a positive note, the volume and value of police and bank impersonation scams have decreased. This suggests that consumers are becoming more aware of these tactics and are better able to recognize and avoid them. Adams attributes this improvement to the extensive educational efforts within the industry, although she cautions that the fight against fraud is ongoing. “As scammers’ tactics continue to evolve, it’s imperative that we continue to invest in arming the public with information and tools to spot and stop scams,” she says.
Conclusion
Barclays’ monthly ‘Scams Bulletin’ represents a significant step forward in the battle against financial fraud. By monitoring and reporting on scam trends, Barclays aims to empower consumers with the knowledge they need to protect themselves. While the Bulletin’s initial findings show promising declines in certain types of scams, the rise in others underscores the need for continued vigilance and education. As fraud tactics evolve, so too must the strategies to combat them, ensuring that consumers remain one step ahead of the scammers.