Latest news with #banks
RNZ News
a day ago
- Business
- RNZ News
Money in transaction accounts costing New Zealanders billions
Experts are reminding New Zealanders to consider whether cash they have stored in the bank could be be earning them interest. Photo: 123RF New Zealanders may be leaving money on the table by keeping their cash in transaction accounts. David Cunningham, chief executive of mortgage broking firm Squirrel, said there was significantly more money in transaction accounts now than before Covid. Most banks do not pay interest on transaction accounts. Cunningham said transaction account balances had peaked at $53 billion when interest rates were close to zero, and people could see little reason to change. It had fallen to a recent low of $37b but had now lifted again to $39b. "Almost all of this earns 0 percent [interest]." If that money was shifted into an account paying 3 percent, it would give savers just under $1.2 billion in interest a year. Cunningham said before Covid hit, there was about $28 billion in transaction accounts. "You're always going to need some float in your transaction accounts but a lot of this is lazy money." He said it was customer inertia that also delivered higher profits to the banks, because they could make money from the cash sitting in the accounts. But he said banks should be encouraging customers to check that they had their money in the right accounts. "Every time you log in they could remind you that you've got say $20,000 in a transaction account earning nothing and if you moved it to savings you could earn x… that would be a way to make sure people were better off," Cunningham said. Claire Matthews, a banking expert from Massey University, said some people kept their money in transaction accounts because of the ease of access. "They may have concerns about fees to access it if it's in a savings account. Partly I think it's because they don't think the interest will be worth it - but they may not have actually looked at the numbers, because depending on the amount it may be very worthwhile over time. Partly, however, it is probably just not getting around to doing it." Banks have been cutting rates for term deposits and some savings this week, after the official cash rate reduction . Westpac said on Thursday it was cutting the rate offered on a number of term deposits by 10 basis points. ASB said it was cutting the rate offered on its Savings On Call, ASB Cash Fund, Savings Plus and Headstart accounts by 20 basis points. That took the Headstart rate to 2.7 percent. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Crypto Insight
a day ago
- Business
- Crypto Insight
Banks ‘very interested' in stablecoin use — Stripe exec
Payment giant Stripe has reportedly held early discussions with banks about potentially integrating stablecoins, signaling growing acceptance in global banking. After debuting stablecoin-based accounts in 100 countries in early May, Stripe has noticed significant interest in stablecoins — cryptocurrencies tied to fiat currencies like the US dollar — from global banks. 'In the conversations we have with them, they're very interested,' Stripe co-founder and president John Collison said in an interview with Bloomberg News on May 30. 'This is not something that banks are just kind of brushing away or treating as a fad. Banks are very interested in how they should be integrated with stablecoins into their product offerings as well,' he stated. Stablecoins will be a big part of future payments The growing interest by banks to integrate stablecoins comes from understanding that such cryptocurrencies offer significantly lower transaction costs for payments, including foreign exchange fees by banks. 'It's extremely expensive to do. It's very slow. It takes a matter of days,' Collison said. 'No one is happy with that equilibrium today. And so I think you will see those kind of profit pools come under attack.' On the other hand, stablecoins offer instant transactions with fees being significantly less than those of FX, Collison said, making a perfect case for payment use globally. 'A lot of our future payment volume is going to be in stablecoins,' Collison said. 'This is, for sure, a big part of our business on a go-forward basis,' he added. Stablecoins have already made an impact on traditional finance, beating volumes of Visa and Mastercard combined in 2024. Stablecoin growth requires green lights from regulators While showing interest in stablecoins, some jurisdictions like the United Kingdom might be falling behind in the race to attract stablecoin operators if they don't move faster with regulations, Collison said. 'You have companies that are being set up to serve this industry — if maybe there was a really good regulatory framework, they would choose to base here,' the Stripe exec said, adding: 'Without that certainty they go somewhere else. I think that's the risk that we need to be aware of.' Collison referred to the European Union's Markets in Crypto-Assets (MiCA) regulation taking force in late 2024, while the UK Financial Conduct Authority is still seeking public feedback on new stablecoin rules as recently as May 28. The latest insights by Collison align with reports suggesting that banks in the United States have been seeking even clearer guidelines from the government clarifying what they can do in crypto. On the other hand, despite falling behind in terms of stablecoin regulation, the UK has seen the largest increase in new crypto owners in the past year, outpacing Europe, according to Gemini. Source:
Yahoo
2 days 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
2 days 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
2 days 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.
