Latest news with #UKFinance
Yahoo
15 hours ago
- Business
- Yahoo
‘Remote purchase' fraud in UK surges as customers tricked into disclosing passcodes
Banks are reporting a surge in a type of fraud where customers are tricked into disclosing online login passcodes they are sent, which has helped to fuel a 22% jump in crimes where scammers go shopping using people's stolen details. The banking body UK Finance revealed that 'remote purchase' fraud hit its highest-ever level in 2024, with almost 2.6m cases logged, which works out at more than 7,000 incidents a day, or almost five a minute. Urging the government to treat fraud as a 'national security threat', UK Finance said the rise in cases suggested that criminals were changing their tactics, amid evidence that another scam – where people are tricked into sending money to fraudsters – was in decline after tougher rules were introduced last autumn. Overall last year, criminals stole about £1.2bn through the various types of financial fraud. This figure was broadly the same as the previous year, but the number of confirmed cases rose by 12% to reach just over 3.3m. The vast majority of these cases involved remote purchase fraud, where criminals use stolen card details to buy items online. Incidents of this type of crime had been falling in recent years, but last year the total amount lost to this scam rose for the first time since 2018. Banks say they are increasingly seeing criminals use sophisticated techniques to get people to disclose one-time passcodes they are sent. These codes usually take the form of a unique set of numbers, a bit like a pin number, and banks typically send them to customers via text message when they use their card to make purchases online, log on to internet banking, or change their personal details. Once in possession of a passcode, a criminal can often use it to authenticate fraudulent online card transactions. These frauds often begin with the familiar methods criminals have developed to encourage people to share their bank details, including sending text messages with a promise of a payment, links to false websites, or offers on social media for cheap products. One variation of the scam involves fraudsters using the details they have obtained to transfer the bank cards of victims to the digital wallets of their own phones and then buy goods online and in high street shops. Related: 'Pay here': the QR code 'quishing' scam targeting drivers In its report, UK Finance said its discussions with the industry 'point to an increase in the compromise of one-time passcodes'. It warned: 'This perhaps points to an over-confidence in one-time passcodes and the protection they offer customers, which is now being exploited to a growing degree by criminals.' Data hacks at third parties, such as retailers, were another 'major driver' of remote purchase fraud, with criminals using stolen card details to make purchases online, said the banking body. It added: 'The data stolen from a breach can be used for months or even years after the incident. Criminals also use the publicity around data breaches as an opportunity to trick people into revealing financial information.' The warning comes after Marks & Spencer was hit by a cyber-attack, though the retailer said this month that the customer data accessed did not include usable payment or card details. Victims of unauthorised fraud – which includes remote purchase scams – are legally protected against losses, and UK Finance said its research indicated that customers were fully refunded in more than 98% of cases. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 hours ago
- Business
- Yahoo
UK banks urged to beef up anti-fraud systems for international payments
UK banks and payment firms have been urged to strengthen their anti-fraud systems for international payments after a rise in scammers tricking people into sending money abroad. After years of horror stories about people losing huge sums through bank transfer scams, rules came into force last October requiring UK banks and other payment firms to refund those who have been manipulated into sending money to criminals. This week, industry data revealed that the number of cases of this type of crime had fallen to its lowest level for five years. Related: 'Remote purchase' fraud in UK surges as customers tricked into disclosing passcodes The frauds are known as authorised push payment (APP) scams. The number of cases fell by 20% last year to just under 186,000, said the banking body UK Finance, which issued the data. In 2023, there were more than 232,000 cases. The decrease is thought to be down in part to the new rules, plus other initiatives and greater awareness. But the figures came with some stings in the tail. While the number of cases fell substantially, the total amount lost to APP fraud decreased by just 2% to £450m. In other words, as UK Finance put it, 'fewer people are handing over bigger sums of money'. There was also a 'notable increase' in APP scams involving international payments, in which criminals trick people into sending money outside the UK. This is not covered by the new rules, which apply to money that is moved from one UK bank account to another. This week's data revealed that international payments accounted for 11% of APP scam losses in 2024 – almost double the 2023 figure. Rocio Concha, the director of policy and advocacy at Which?, said: 'Fraudsters are constantly evolving their tactics, so it is disheartening but unsurprising to see a rise in the number of cases in which scammers trick their victims into sending money abroad.' As these payments are not covered, the victims are very unlikely to get their money back. 'Banks and payment firms should enhance their anti-fraud controls for international payments, and the independent review of the mandatory reimbursement scheme in October should take note of these emerging trends,' said Concha. Most of the APP frauds reported last year (71%) were purchase scams, in which the victim hands over money for goods or services – perhaps a car, a mobile phone or gig tickets – that either do not exist or never arrive. When it comes to the total amount of money lost, investment scams dominate. Typically, the criminal convinces victims to move their money to a fictitious fund or pay for a fake investment. Cryptocurrencies often feature heavily. More than £144m was stolen via this type of APP fraud in 2024 – up 34% on 2023, despite a sizeable fall in the number of cases. UK Finance is itself not immune to being targeted by scammers. This week there was a prominent warning on its website saying: 'We are aware of a potential scam involving people being offered loans for an upfront fee by an individual posing as a representative of UK Finance.' The organisation doesn't offer any financial products, 'and anyone claiming to provide such products on our behalf is fraudulent,' it said. Meanwhile, the payments firm Visa this week revealed four fraud tactics that it said had been gaining ground across the UK and Europe in recent months. They are: Fraudsters offer high-value goods – such as exercise machines – at low prices. Shoppers are tricked into handing over the one-time passcode banks send customers to authorise transactions. These are then used by criminals to carry out fraud. Fake apps impersonating trusted organisations are stealing personal and financial data. Scammers get hold of people's card details via phishing and then link these to criminal-controlled digital wallets. They then use software that allows them to make contactless payments using these details remotely from anywhere in the world. Generative artificial intelligence is increasingly being used to create convincing fake IDs and open fraudulent accounts. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
15 hours ago
- Business
- The Guardian
UK banks urged to beef up anti-fraud systems for international payments
UK banks and payment firms have been urged to strengthen their anti-fraud systems for international payments after a rise in scammers tricking people into sending money abroad. After years of horror stories about people losing huge sums through bank transfer scams, rules came into force last October requiring UK banks and other payment firms to refund those who have been manipulated into sending money to criminals. This week, industry data revealed that the number of cases of this type of crime had fallen to its lowest level for five years. The frauds are known as authorised push payment (APP) scams. The number of cases fell by 20% last year to just under 186,000, said the banking body UK Finance, which issued the data. In 2023, there were more than 232,000 cases. The decrease is thought to be down in part to the new rules, plus other initiatives and greater awareness. But the figures came with some stings in the tail. While the number of cases fell substantially, the total amount lost to APP fraud decreased by just 2% to £450m. In other words, as UK Finance put it, 'fewer people are handing over bigger sums of money'. There was also a 'notable increase' in APP scams involving international payments, in which criminals trick people into sending money outside the UK. This is not covered by the new rules, which apply to money that is moved from one UK bank account to another. This week's data revealed that international payments accounted for 11% of APP scam losses in 2024 – almost double the 2023 figure. Rocio Concha, the director of policy and advocacy at Which?, said: 'Fraudsters are constantly evolving their tactics, so it is disheartening but unsurprising to see a rise in the number of cases in which scammers trick their victims into sending money abroad.' As these payments are not covered, the victims are very unlikely to get their money back. 'Banks and payment firms should enhance their anti-fraud controls for international payments, and the independent review of the mandatory reimbursement scheme in October should take note of these emerging trends,' said Concha. Most of the APP frauds reported last year (71%) were purchase scams, in which the victim hands over money for goods or services – perhaps a car, a mobile phone or gig tickets – that either do not exist or never arrive. When it comes to the total amount of money lost, investment scams dominate. Typically, the criminal convinces victims to move their money to a fictitious fund or pay for a fake investment. Cryptocurrencies often feature heavily. More than £144m was stolen via this type of APP fraud in 2024 – up 34% on 2023, despite a sizeable fall in the number of cases. UK Finance is itself not immune to being targeted by scammers. This week there was a prominent warning on its website saying: 'We are aware of a potential scam involving people being offered loans for an upfront fee by an individual posing as a representative of UK Finance.' The organisation doesn't offer any financial products, 'and anyone claiming to provide such products on our behalf is fraudulent,' it said. Meanwhile, the payments firm Visa this week revealed four fraud tactics that it said had been gaining ground across the UK and Europe in recent months. They are: Fraudsters offer high-value goods – such as exercise machines – at low prices. Shoppers are tricked into handing over the one-time passcode banks send customers to authorise transactions. These are then used by criminals to carry out fraud. Fake apps impersonating trusted organisations are stealing personal and financial data. Scammers get hold of people's card details via phishing and then link these to criminal-controlled digital wallets. They then use software that allows them to make contactless payments using these details remotely from anywhere in the world. Generative artificial intelligence is increasingly being used to create convincing fake IDs and open fraudulent accounts.
Yahoo
2 days ago
- Business
- Yahoo
Sub-4% mortgage rates on the rise as Bank of England cuts interest rates
Every major lender is now offering deals under 4%, giving some respite for borrowers amid a mini price war among mortgage providers as the Bank of England (BoE) cuts interest rates. The average rate for a two-year fixed mortgage stands at 4.79%, lower than last week's 4.99%, while five-year fixed deals average 5.04%, below last week's 5.24%, according to data from Uswitch. The Bank of England has cut interest rates from 4.5% to 4.25%, meaning the average homeowner on a tracker mortgage will see their monthly repayments fall by nearly £29, after the quarter-point snip to the base rate. UK Finance said homeowners on tracker deals will typically see their monthly repayments reduce by £28.97, based on balances outstanding. This could add up to a saving of nearly £350 over the course of a year. People on a standard variable rate (SVR) mortgage could see their monthly payments fall by £13.87, assuming that their lender passes on the base rate cut in full, which could add up to a saving of nearly £170 over a year. The primary inflation measure, the Consumer Price Index (CPI), stood at 2.6% in the 12 months to March 2025, a slight decrease from the previous month. That means that prices have been rising at the slowest pace since December and are closer to the BoE's 2% target. This week, Santander (BNC.L) has cut rates deeper into sub-4% territory, as has Barclays (BARC.L). Meanwhile, Nationwide (NBS.L) is making it easier for people to secure a mortgage by reducing its affordability stress rates. Read more: UK hotspots with highest demand for homes with garages The UK financial watchdog has announced plans to water down its rules on mortgage lending to make it faster and cheaper for people to get home loans. UK lenders will be freed from having to provide formal advice or to carry out full affordability assessments when arranging mortgages for many customers, under plans outlined by the Financial Conduct Authority (FCA). Skipton Building Society has launched its Delayed Start Mortgage, which allows new homeowners to postpone repayments for the initial three months, providing "breathing space" to manage the additional expenses that come with purchasing a home. Meanwhile, the number of mortgaged homeowners having their home repossessed jumped by nearly a fifth in the first quarter of this year, compared with the previous three months, according to figures from a banking and finance industry body. Some 1,220 homeowner repossessions were recorded by UK Finance in the first quarter of this year, marking an 18% rise compared with the last three months of 2024. There were also 810 buy-to-let home repossessions in the first quarter of this year, marking a 16% rise on the previous quarter. UK Finance said that, although repossession numbers increased, they remain low compared with the longer-term. It said that the 2,030 homeowner and buy-to-let repossessions in the first quarter of 2025 was significantly lower than the 13,200 repossessions seen in the first quarter of 2009, during the global financial crisis. Current repossessions predominantly relate to older mortgages, the report said, with more than two-thirds of repossessions relating to mortgages arranged at least a decade ago. HSBC (HSBA.L) has a 3.93% rate for a five-year deal, unchanged from the previous week. For those with a Premier Standard account with the lender, this rate is 3.90%. Looking at the two-year options, the lowest rate is 3.91% with a £999 fee, also unchanged. Both cases assume a 60% loan-to-value (LTV) mortgage, meaning buyers need to have at least 40% for a deposit. HSBC offers 95% LTV deals, meaning you only need to save for a 5% deposit. However, the rates are much higher, with a two-year fix coming in at 4.99% or 4.94% for a five-year fix. This is because their financial situation and deposit size determine the rate someone can get. The larger the deposit, the lower the LTV, allowing buyers to access better deals because lenders consider them less risky. NatWest (NWG.L) has a five-year deal coming in at 3.88% with a £1,495 fee. No changes from last week. The cheapest two-year fix deal is 3.88%, again untouched from the previous week. In both cases, you'll need at least a 40% deposit to qualify for the rates. At Santander (BNC.L), a five-year fix is 3.99% for first-time buyers, lower than the previous 4.10%. It has a £999 fee, assuming a 40% deposit. For a two-year deal, customers can also secure a 3.89% offer, with the same £999 fee, which is also lower than the previous 3.94%. Read more: UK economy grows 0.7% in first quarter of the year Santander has also introduced mortgage products tailored to first-time buyers with large loans. These feature two- and five-year fixed-rate deals at 60% LTV, albeit with a higher £1,999 product fee. Barclays (BARC.L) was the first among major lenders to bring back under-4% deals and it has cut them again, with a five-year fix at the lender at 3.89%, lower than last week's 3.93%. For "premier" clients, this rate drops to 3.88%. The lowest you can get for two-year mortgage deals is 3.87%, also a reduction from the previous 3.92%. Barclays has launched a mortgage proposition to help new and existing customers access larger loans when purchasing a home. The initiative, known as Mortgage Boost, enables family members or friends to effectively "boost" the amount that can be borrowed toward a property without needing to lend or gift money directly or provide a larger deposit. Under the scheme, a borrower's eligibility for a mortgage can increase significantly by including a family member or friend on the application. For example, an individual with a £37,500 annual income and a £30,000 deposit might traditionally be able to borrow up to £168,375, enabling them to purchase a home priced at around £198,375. However, with Mortgage Boost, the total borrowing potential can rise substantially if a second person — such as a parent — joins the application. In this case, if the second applicant also earns £37,500 a year, the combined income could push the borrowing limit to £270,000, enabling the buyer to afford a home worth up to £300,000. Nationwide's (NBS.L) lowest mortgage rate now stands at 3.84%, which is available to new and existing customers who are looking to move to a new home. This rate is available on both the two-year and five-year fixed rate products. For the first time since September 2024, Nationwide will be offering sub-4% rates for first-time buyers. The lowest first-time buyer rate is 3.94% and available on a two-year fixed rate product at 60% loan-to-value (LTV) with a £1,499 fee. First-time buyers can also get 3.99% on the same 60% LTV, two-year fixed rate product but with a lower £999 fee. For a five year fix, first-time buyers are currently looking at 4.09%. Read more: Rightmove and Nationwide launch property lending checker Carlo Pileggi, Nationwide's senior manager, mortgages, said: 'We're pleased to be able to make our third rate cut in three weeks as we strive to remain one of the most competitive lenders in the market. This latest round of changes includes us offering sub-four percent rates for first-time buyers, as well as reducing rates across our Helping Hand mortgages, which enable eligible first-time buyers to borrow up to six times their income up to 95% loan-to-value.' The lender has announced it is adjusting its mortgage affordability calculation by reducing its stress rates by between 0.75 and 1.25 percentage points, helping applicants to borrow more — whether buying a first home, moving or remortgaging. Applicants will be able to borrow, on average, £28,000 more from today, however in some remortgage cases customers could borrow up to £42,600 more. Nationwide is reducing both its standard stress rate and the rate applied to eligible first-time buyers and home movers fixing their deal for at least five years. Halifax, the UK's biggest mortgage lender, offers a five-year rate of 3.93% (also 60% LTV), unchanged from the previous week. The lender, owned by Lloyds (LLOY.L), offers a two-year fixed rate deal at 3.87%, with a £999 fee for first-time buyers, which is also unchanged. It also offers a 10-year deal with a mortgage rate of 4.78%. Read more: How to choose where to live as you get older The lender has enhanced its five-year fixed mortgage products by increasing borrowing capacity. This improvement allows borrowers to access up to £38,000 more, enabling them to secure larger mortgages based on individual incomes. Rachel Springall, finance expert at Moneyfacts, said: "The flourishing choice of low-deposit mortgages will no doubt be welcomed by borrowers who are either looking to remortgage or are a first-time buyer. "The government has been clear that it wants lenders to do more to boost UK growth, and so a rise in product availability for aspiring homeowners is a healthy step in the right direction." Amid this mini price war between mortgage providers, prospective homeowners have some better options. NatWest's (NWG.L) 3.88% is currently the cheapest deal for five-year fixes, while Halifax and Barclays' 3.87% comes out on top for two-year fixes among the top banks, though both require a 40% deposit. The average UK house price is £297,781, so a 40% deposit equates to about £120,000. A growing number of homeowners in the UK are opting for 35-year or longer mortgage terms, with a significant rise in older borrowers stretching their repayment periods well into their 70s. Read more: Savers making costly 'bad decisions' around pensions as 15 million risk retirement poverty Lender April Mortgages offers buyers the chance to borrow up to six times their income on loans fixed for five to 15 years, from a deposit of 5%. Both buying alone and those buying with others can apply for the mortgage. As part of the independent Dutch asset manager DMFCO, the company offers interest rates starting at 5.20% and an application fee of £195. Skipton Building Society has also said it would allow first-time buyers to borrow up to 5.5 times their income to help more borrowers get on the housing ladder. Leeds Building Society is increasing the maximum amount that first-time buyers can potentially borrow as a multiple of their earnings with the launch of a new mortgage range. Aspiring homeowners with a minimum household income of £40,000 may now be able to borrow up to 5.5 times their earnings. Mortgage holders and borrowers have faced record-high repayments in recent years, as the Bank of England's base rate has been passed on by banks and building societies. According to UK Finance, 1.3 million fixed mortgage deals are set to end in 2025. Many homeowners will hope the Bank of England acts quickly to cut rates more aggressively. At the same time, savers will likely root for rates to remain at or near their current levels. Read more: How rising house prices can impact your finances How to negotiate house prices What are green mortgages and are they the future?Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
UK Sees Card Fraud Soar Even After Clampdown on Payment Scams
Fraudsters have switched up their tactics after the UK cracked down on authorized push payment scams, meaning the overall amount stolen was broadly unchanged last year. Criminals swiped £1.2 billion ($1.6 billion) in 2024, according to trade body UK Finance's annual fraud report. The amount taken using authorized push payments, where a victim is tricked into sending money to an account controlled by scammers, fell 2% to £450.7 million, and the number of cases fell by a fifth to the lowest since 2020.
