No-hang up fraud victims unlikely to get bank compensation
07 July 2015 | 4171 views | 2
Nearly two thirds of British 'no-hang up' victims do not get compensated by their banks, the Financial Ombudsman Service (FOS) has revealed.
No-hang up scams see crooks cold call people pretending to be from their bank or the police, warning them that their account is in danger and money needs to be moved or withdrawn. The victim is told to hang up and call their bank back but the criminal simply stays on the line to harvest their details.
The FOS says that of 200 cases it reviewed, in just 37% did the ombudsman find the bank’s response to the fraud had fallen short and ordered that customers be compensated. In the remainder of the cases, the bank had done all that it could.
The sums involved were substantial, with 38% of people losing between £5000 and £14,999, 20% between £20,000 and £49,999, and some more than £100,000. Most victims are older - of the 200 cases reviewed, 80% of those conned were over the age of 55, and in five was over 75.
Caroline Abrahams, charity director, Age UK, says: "Government and financial institutions need to recognise the relentless threat to older people that fraud represents and take much more determined action against it."