Reports of an increased number of financial services scams during the Pandemic: a result of a move to remote services?
It has just recently been revealed by the think tank "Parliament Street" that the Financial Conduct Authority is currently investigating around 165 suspected scams relating to the Pandemic.
A number of these scams are related to online banking and app-based services, for example one of the key scams involved trying to access the log-in details of customers of a multinational bank.
In one of our recent FinTech podcast series, Christina Fleming and I examined the idea that Covid 19 could well be a time of opportunity for FinTech. It is without doubt that the pandemic will have pushed many consumers online for their financial services. The lockdown would have prohibited people from visiting their local branches, while now it has been lifted people feel safer using financial services remotely.
Customers will always have had their concerns as to the security of online and app-based financial services, but this latest news reveals that scammers are genuinely targeting these online arrangements. There is a further concern for financial services providers themselves that these scams could be used by money-launderers.
The news highlights the importance of watertight online systems to ensure that these are not taken advantage of by scammers. In the move to provide financial services remotely, it is crucial that this does not result in consumer detriment. Robust security systems are imperative to protect customers and ensure that they remain confident in using online and app-based technology.
The Financial Conduct Authority (FCA) is investigating more than 150 Coronavirus-related scams since the outbreak began, according to official figures.
