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UK Regulators Turn to Jingle to Fight Loan Scams

UK Regulators Turn to Jingle to Fight Loan Scams
Written by Publishing Team

This Christmas, the UK’s Financial Conduct Authority (FCA) is taking the fight against fraud to a whole new musical level.

Earlier this month, the FSA announced in a statement that it had released the country’s first official anti-fraud song, “designed as a fun and engaging way to spread awareness of loan fee fraud advice to consumers at Christmas.”

The song, produced in partnership with behavioral scientists Influence At Work and music production company Soviet Science, has been posted on the FCA’s website and can be streamed on Spotify, Apple Music and YouTube.

According to Mark Steward, executive director of implementation and market oversight at FCA, last year’s Christmas shutdown robbed the nation of the fun of getting together with family and friends, which is why they “deserve to celebrate the festive period this year in style.”

But he said, “It is a sad reality that fraudsters will look for every opportunity to exploit vulnerable people through loan fee fraud,” at a time when families already have to deal with increased holiday spending.

That’s why the FCA is turning to science and music this Christmas, Steward explained, hoping to engage consumers on the topic of loan fee fraud in an accessible and memorable way, while encouraging increased vigilance during festive festivities and helping consumers better identify warning signs of fraud. in loan fees.

These signs include a sudden call to a consumer by someone offering a loan after multiple loan applications have been submitted, a request for a down payment into a bank account, a request to transfer money via an unusual method or pressure to pay fees quickly.

As Steward said, “Scammers can target anyone, so my message is simple: If you’ve been contacted by text, call or email with a loan offer. Whoa. Think about. Go to the FCA registry to check company details and make sure it’s She is authorized to extend credit before taking out a loan.”

The recommendation to take this extra creative step to combat fraud during the Christmas period, compared to the rest of the year, is no accident. Data from the FCA shows that more consumers are scammed between November and January than in the rest of the year, as many people are more likely to take out loans during that time to fund higher holiday expenses.

According to the FCA, a total of 1,456 cases of loan fee fraud were reported during those three months, costing victims an average loss of £274 per scam. And while one in every 20 calls the FCA received during that period was to report a case of loan fee fraud, there was a 32% increase in loan fee fraud calls per month between November and January compared to the rest of the year.

A 2020 FCA survey also revealed that nearly 30 million adults in the UK “have ‘vulnerability’ characteristics, which make them more vulnerable to fraud of this kind,” the statement noted.

National security threat

As if these numbers weren’t alarming enough, the UK is dealing with a wider fraud epidemic – which, according to UK Finance, has reached a level that makes it a “national security threat”.

Read more: UK banking protocol helps stem $44m fraud attempts in first half of ’21

A recent report from the banking industry lobby group cited in the PYMNTS study on certified payments showed that fraud attempts totaling £32 million ($44 million) took place between January and June of this year alone, while another PYMNTS report revealed that 73% Of the companies in the country have experienced data breaches stemming from phishing within the past year.

Related news: 73% of UK businesses experienced phishing-related data breaches in the last 12 months

Digital scams related to cryptocurrency are also on the rise, resulting in virtual currency losses of more than 146 million pounds ($201.2 million) in the first 10 months of this year, which is a 30% increase compared to the amount lost during the whole of 2020. .

Read the PYMNTS report: Don’t Poach: Layered Defense is the Best Way to Keep Scammers Empty

No doubt it will take time to combat this widespread epidemic of fraud – and for now, the FCA is focused on ensuring that people in the UK can enjoy this Christmas holiday armed with their own anti-fraud song.

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New PYMNTS data: Documenting identities in the digital economy – December 2021

on:More than half of American consumers believe biometric authentication methods are faster, more convenient, and trustworthy than passwords or PINs – so why do less than 10% use them? PYMNTS, in collaboration with Mitek, surveyed more than 2,200 consumers to better determine this perception versus the usage gap and identify ways companies can boost usage.

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