It’s 2024, and if you haven’t had a dodgy text from “RoyalMail_UK100” or a random email offering a suspicious inheritance from a prince, I’d love to know what kind of phone contract you’re on.

Scam messages have become as common as unexpected rain at a British barbecue. But, in what feels like an overdue twist, there’s some good news in the pipeline. New rules are stepping up to protect us from those sly cyber scammers.

The rise of the scam squad

So, you’ve probably been bombarded by texts or emails that start with “Hey, your delivery’s stuck,” or “URGENT: Your bank account has been compromised!”

Usually followed by a dodgy link that looks about as trustworthy as a 99p steak.

Before you know it, you’ve clicked through, and suddenly, you’re £500 lighter, and your bank is on the phone asking why you’re buying designer handbags in Dubai.

But here’s the kicker: scammers are getting smarter, thanks to the ever-evolving world of AI. These days, they’re not just relying on poorly worded messages; they’re using sophisticated algorithms to craft more convincing scams, personalise attacks, and even mimic loved ones and legitimate organisations.

That’s where the Government’s finally said, “Enough is enough!”

From now on, banks and other services will be legally required to reimburse you if you get scammed. But there are some catches.

What’s actually changing?

No, they’re not sending Liam Neeson to hunt down scammers (unfortunately), but the new rules are a big deal.

These frauds are known as authorised push payment (APP) scams, and the ballooning scale of the problem has prompted changes to the rules, which took effect on 7 October.

The mandatory fraud reimbursement scheme is being brought in by the Payment Systems Regulator (PSR) and includes these changes:

1. Affected individuals can expect to be reimbursed within five business days of making their claim. So, if you do fall victim, your bank is now obligated to return your money quickly, rather than dragging their feet.
2. There will be a maximum compensation of £85,000. This has been reduced from £415,000 after lobbying from the payments industry, but it’s still a significant amount to cover most fraudulent transactions.
3. There’s an optional £100 excess that firms can apply to a claim. However, some banks, such as TSB, have already pledged to waive this excess entirely. Plus, the PSR has ruled that this excess cannot be applied to “vulnerable” consumers, offering added protection for those at greater risk.
4. There will be a 13-month limit on claims. This means you have over a year to discover the fraud and still be eligible for a refund, which is good news if you’re not checking your account every day.
5. Once a bank or payment company has refunded the customer, the financial institution can then claim half of the money back from the bank used by the criminal to receive it. This move spreads accountability and incentivises banks to stop fraudsters before they strike.

What does this mean for you?

These new rules apply to authorised push payment (APP) scams. This is where a scammer convinces you to send them money (usually through elaborate deceptions).

It differs from other kinds of scams, where say your card details are stolen or cloned – which are already generally well protected and reimbursed by financial institutions.

The idea with these new APP protections is to make your financial institutions and service providers more accountable, and you a little safer from those predatory scams lurking in your text messages. While the Wild West of scams is still out there, we can feel slightly more reassured that if we do fall victim, we will hopefully get most of our money back.

Check out our latest podcast “Tax rumours, scammers and Amazon Prime Day”

Will it actually work?

Ah, the big question. Will these new rules make a difference, or are we just putting lipstick on a pig? Well, early signs are hopeful. But some of the caveats mean we should change how we behave.

For instance, with the maximum compensation now set at £85,000, making payments bigger than this in one go is a big no no. In the same way that we shouldn’t have more than £85,000 in any one bank account because this is the Financial Services Compensation Scheme (FSCS) limit.

Making payments bigger than this is very unusual, and likely to affect people making pensions transfers or buying property with cash. Both of which should be done with extreme carer anyway

The Government seems serious about making companies step up. Of course, it won’t stop every scammer—especially since their AI-enhanced tactics are likely to keep evolving—but at least now, you’ve got a better chance of clawing back your cash.

The battle between the scammers and regulators is on, and while we might not win every round, we’re certainly in for a fairer fight.

TL;DR: finally, some protection

In short, 2024 is the year the tables are turning on text and email scammers. With new regulations forcing banks and services to take more responsibility, we might just get a break from the constant barrage of “urgent” messages.

So, the next time you get an odd text claiming you’ve won a lottery you didn’t enter, breathe a little easier knowing the cavalry is (hopefully) coming.

Just don’t start clicking those links yet, alright?

Photo credits: Pexels

The post Could new rules for banks protect you from scams? appeared first on Mouthy Money.

This week in our first edition of Money Mole – our insider looks at why banks make it so damn hard to contact them on the phone.

If you’ve ever had the misfortune of needing to phone your bank, you’ll be all too familiar with how painful the experience can be.

Prepare to set aside at least an hour of your day just to get through to someone, and that’s after going through several rounds of automated messages and apologies for ‘unusually long wait times’ that have become the norm.

But before all this hassle even begins, if you need to phone one of these firms now, you’ll encounter a new and even more frustrating problem.

Banks have quietly buried their phone numbers on obscure pages of their websites, presumably to deter customers from ringing for help.

In a way, it’s genius – you can’t have long call wait times if no one can call you. But for their customers, it’s an infuriating nightmare.

I looked at some old versions of bank’s homepages on the internet archive Wayback Machine and found most banks’ ‘contact us’ pages had their phone number in very obvious places.

When the pandemic hit, banks replaced these with messages saying call volumes were high and wait times long and encouraged people not to ring.

Since then, those messages have been removed – but phone numbers haven’t returned.

Even finding the ‘contact us’ button anywhere on the homepage can be a miserable game of Where’s Wally.

Where’s your number?

Using Wayback Machine I was able to look at the major banks contact pages.

Lloyds is not playing fair. In 2019 it had a central contact number on the home page, but that is now long gone, replaced by a complicated menu on the contact page. Lloyds’s website has a particularly tiny “contact us” button on the homepage too.

Santander used to have a super clear list of important numbers on its contact page in 2019, but in 2023 you’re forced to use a fiddly menu instead.

Barclays and HSBC are even worse – they don’t appear to have had an obvious contact number on their home or contact pages and have had annoying clicky menus since 2019 at least.

But worst of all is the NatWest page, which is so obfuscatory about how to contact the bank they may as well not have a phone number. It took us multiple clicks and dead ends before we got to a telephone number and was extremely unclear throughout the site.

Back in 2019 it wasn’t much better with several clicks needed to get to a phone number list, but at least that list used to exist.

The bank even tries to foist an AI assistant upon you as if it weren’t bad enough (something they were already doing in 2019 too).

The point here isn’t that the numbers aren’t available at all – they are if you know where to look or are prepared to spend some time digging around.

It is that it should be the simplest thing in the world to get hold of one, especially for customers who might be in a vulnerable, a victim of fraud, or who might not be technologically savvy.  

The fact though is it is far from simple. And it is made worse by the swathes of bank branch closures we see in the news every month.

At least, the Money Mole thinks they should provide one easy to find central contact number for those who aren’t comfortable navigating the websites looking for the “right” number.

Worrying business trend

And banks aren’t the only ones who have gone down this route – telecoms firms are also nigh-on impossible to contact, which is ironic, given the nature of their business.

We don’t have the time or inclination to dig through every major company in the UK but it appears to be a worrying trend in many businesses.

I’m sure these firms are inundated with calls and need to filter out some of the simplest requests.

But hiding their phone number is just sneaky and a huge disservice to loyal customers who want to speak to a human in a time of need.

Worse – it can drive people to search for numbers in other places such as search engines, which might yield straight up scam results.

A chatbot isn’t going to reassure you if your card has been stolen or you think you’ve been scammed.

It’s time for these companies to stop shirking their responsibility to be contactable by their customers and get their phone numbers back on the home page.

What the banks say

Mouthy Money has approached the banks about the lack of phone numbers on their home pages. 

Barclays, HSBC and Santander were quick to point out they have general customer service numbers on the back of their bank cards. This isn't that helpful if you've lost your card though. 

The banks say their customer contact pages are designed to help people find the right customer service line for their needs. 

Here's what they've told the Money Mole

Santander: "The previous version of our contact pages (pre-2020) displayed a range of phone numbers, which often led to customers calling the wrong line and needing redirection. 

"The current online experience for those searching for a contact number ensures that the right number is provided, within a few clicks, and in line with the customer’s needs. 

"The objective is to help customers get to the right place to address their query sooner – and provide options including digital and automated support (such as our chatbot) as alternatives to the phone for the many customers who choose to interact with us this way."

"Our customer research in 2019 showed us that a significant number of requests coming into us over the phone could have been resolved with the information provided on our website."

The bank also said it now has a "voice in branch" initiative where branch employees assist on customer phone lines.

Barclays: "Regarding the ‘contact us’ page itself: We have specialist customer service teams for different products and types of enquiry – the triage options on our ‘contact us’ page help customers find the right number for each team, so they can get their enquiry resolved more quickly."

HSBC: "The HSBC UK homepage features a help and support section that contains answers to popular customer queries, including how to contact us by phone, online chat and in branch.

"Some customers, including those with certain vulnerabilities or access issues, prefer not to contact us by phone so we also offer the opportunity to talk to us via online chat, as well as visit us in branch."

Lloyds Bank: “Our Contact Us and Help Centre hubs are linked from our Lloyds Bank home page and, once on these hubs, customers can access dedicated and extensive information about customer support, including the phone numbers for our teams.”

NatWest: “We offer a range of ways that customers can contact us, on the phone, through our website, mobile app and in branch. Our online chat is often the quickest way a customer can receive help. We also clearly print our phone number on the back of all our bank cards.”

The Money Mole is a new insider column brought to you by personal finance blog Mouthy Money.

Written anonymously by an experienced financial media personality working deep inside the money sector, the aim of this opinion column is to call out what we think is bad behaviour and general shithousery from financial firms and other businesses in the UK.

Have you got something you want to dish? Email us at editors@mouthymoney.co.uk

Photo Credits: Pexels

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British savers should be earning up to twice the interest they currently are on their savings, Mouthy Money can reveal.

In a fresh blow to savers, damning new evidence uncovers how banks are routinely underpaying customers, despite interest rates recently hitting a 15-year high.

Data compiled for Mouthy Money by Moneyfactscompare.co.uk show how banks are paying up to half the interest they were in November 2008 – the last time Bank of England Base Rate was at its current level of 4.5%.

The revelation will heap further pressure on banks, which have been accused of profiting from the recent spate of interest rate hikes at their customers’ expense.

‘Vote with your feet’

Experts have urged savers to “vote with their feet” and ditch low-paying providers for those offering higher rates of interest.

Laura Suter, head of personal finance at investment firm AJ Bell, says: “As more people vote with their feet and shift their savings to a better-paying account, banks will face more pressure to raise rates to keep customers.”

The BoE has hiked interest rates 12 times in 16 months, leading to hopes of a better deal for savers after more than a decade of measly rates.

However, savings rates haven’t risen by anywhere near as much as official interest rates over the same period. This has led to accusations that banks are taking advantage of the fact their customers rarely switch accounts.

Moneyfactscompare.co.uk’s data shows how banks are paying much lower rates of interest to savers than they were 15 years ago. This is despite the fact official interest rates are at the same level now as they were back then.

For example, the last time official interest rates were 4.5% the average easy-access account paid 3.73%. Today it pays just 2.19% – some 1.54 percentage points less.

It means someone with £10,000 in an easy-access account is earning £154 a year less, on average.

Raw deal

The problem is not isolated to easy-access accounts, with savers earning significantly less across all product types.

Savers willing to lock their money away for 12 months currently earn an average of 4.18% a year – 1.61 percentage points less than in 2008.

Similarly, savers holding their cash in three and five-year fixed rates are on average paid 1 and 0.55 percentage points less, respectively.

Those worst off are holders of easy-access ISA accounts. According to Moneyfactscompare.co.uk, these savers earned 2.42 percentage points more on their money 15 years ago than they do today.

While banks are not obliged to pass on interest rates rises in full to savers, experts widely agree they are leaving their customers short.

MPs on the powerful Treasury Select Committee (TSC) recently called on banks to explain why they have been dragging their heels when it comes to passing on rate rises to their savings customers.

Calls for action

The calls for action have become deafening since it emerged that the UK’s biggest banks reported bumper profits in the financial year just gone.

A recent investigation by Mouthy Money revealed how banks made those profits by charging mortgage borrowers higher rates and underpaying their savers.

Hargreaves Lansdown, the investment company, calculated recently that savers are missing out on £23bn a year because banks are refusing to pass interest rate hikes on in full.

Experts claim banks were more readily willing to pass interest rate rises onto savers in the past than they are today.

Rachel Springall, personal finance expert at Moneyfactscompare.co.uk, says: “Base Rate is not as intrinsically linked to savings accounts as it was many years ago. Whilst there are some deals that rise in line, there are many providers that offer savings products which can see the interest rates offered rise or fall depending on their deposit targets.”

Suter says: “Banks respond to two forces: the Base Rate and competitors. They will use Base Rate as a gauge of whether to raise their savings rates, but of much more importance is what their competitors are doing.

“No bank is going to hike rates dramatically above the highest rival, as they only need to nudge it slightly over their competitor’s offering to win business.”

Pressure building

Regardless, MPs continue to apply pressure on the banks to boost the rates they pay savers.

Recently, Harriett Baldwin, chair of the TSC and the MP leading the charge against the banks, said: “Recent results announcements show that the UK’s biggest banks are continuing to squeeze record profits from their loyal savers.

“In a high interest rate environment, and with further Bank of England base rate rises possible, banks must do more to encourage saving.”

She added: “Consumers should continue to vote with their feet and find better offerings. This, more than anything, will drive the banks to increase their currently measly rates.”

A spokeswoman for UK Finance, the trade body representing banks in the UK, says: “Banks take a number of factors into account when determining the interest rate paid to savers or by borrowers. The Bank of England’s official ‘Bank Rate’ is only one factor. Other factors include the cost of raising funds, both in the retail and wholesale markets, capital and liquidity requirements, customer and regulatory expectations and the fact not all borrowers will fully repay loans.

“There is a wide range of cash savings accounts on the market and the interest rates offered are set by individual banks in competition with each other. The level of competition in the market is a key factor, alongside the nature of a bank’s own business model and customer strategy.”

How savings rates compare now versus November 2008

Source: Moneyfactscompare.co.uk; Rates based on £10k savings pot and are correct as of 30/05/23

Photo Credits: Pexels

The post Why savings rates should be double what they are appeared first on Mouthy Money.

If you’re a regular saver, you’ll have noticed that savings rates are much higher than they used to be.

It means after years of pitifully low savings rates, savers can once again make relatively decent returns on their money.

That is because the Bank of England (BoE) has hiked base rate – the UK’s most important interest rate – by 4.15 percentage points to a 14-year high of 4.25% over the past 15 months.

When interest rates rise, the rates on loans tend to rise, meaning borrowing becomes more expensive. But, on the upside, savers get higher rates of interest on their cash – in theory.

However, while banks are hitting borrowers with higher borrowing costs, they have been slower to pass on rate rises to savers.

For example, over the past year base rate has increased by 3.5 percentage points.

However, according to data firm Moneyfactscompare.com, the average easy access savings rate has risen by just 1.6 percentage points.

Over the same period, the average two-year fixed rate mortgage has rocketed by 2.67 percentage points, the firm’s data shows.

Banks are not obliged to pass on interest rate rises in full to savers. However, Unite, the trade union, accuses banks of ‘pickpocketing’ their customers by not doing so.

The trade union claims the big four UK banks – Barclays, HSBC, Lloyds and NatWest – have already made an extra £7bn profit from rising interest rates.

The banks have made this extra money by raising interest rates for borrowers and not passing on rate rises in full to savers, it says.

Unite’s general secretary Sharon Graham hasn’t minced her words about the situation, either.

She says: “The banks have already made billions in extra profit from interest rate rises. If the [Bank of England’s Monetary Policy Committee] raises rates again they stand to gain even more. Banks treat these rises as a licence to pick the pockets of householders across Britain.”

There is no doubt that banks are coming under increased scrutiny on this issue. The Big 4 banks have all been hauled in front of The Treasury Select Committee (TSC) this year to explain themselves.

Meanwhile, the TSC has written to City regulator to ask whether banks are making disproportionate profits from dragging their heels on savings rates.

Here at Mouthy Money, we will be watching carefully. Too many banks have no interest in being fair or transparent and that simply isn’t good enough.

In the meantime, don’t accept sub-par savings rates. Shop around to find a better deal for your savings using a savings comparison site.

Photo Credits: Unsplash

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With thanks to talkRADIO

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