Banking fraud could be tip of the iceberg

30th March 2015

The full scale of online banking fraud was revealed at the weekend by Financial Fraud Action UK. It rose 50% on the previous year to £60 million in 2014. And that may just be the tip of the iceberg - recent figures from the City of London Police suggest 85 per cent of fraud and cybercrime goes unreported.

Little wonder then that 77% of people who have paper bank statements say the most important reason for keeping them is to check for fraudulent or incorrect transactions, according to Keep Me Posted’s own research.

Keeping an eye on your own money is so important, that anything, such as a paper bill or statement, that makes it easier, shouldn’t be lost. The Money Advice Service reported last week that attitudes towards money management can jeopardise their ability to cope – being “bad” with money is perceived to be an easier option than proper budgeting or putting money aside for unexpected events. If you already have that attitude, how much easier it is to ignore an email from your bank or utility about your money than it is to be confronted with the hard evidence of a piece of paper slipping through the letterbox. 

I was at the launch of the Money Advice Service’s launch of its new evidence hub,  which will bring together up to the minute evidence on what really works in helping people manage their money better. We’re hoping our own research on the differences between people managing their money via online and on paper will be able to add to the debate. 

Judith Donovan