48% of 25–34-year-olds have or know someone who has been a victim of financial fraud, with fraudsters taking £570 from people on average. That is according to new data from GFT’s ‘Banking Disruption Index’, a quarterly survey of consumer sentiment towards digital banking. It found that 22% of victims had to wait up to two weeks to get their money back from their bank.
Despite the significant investment banks make to protect their customers from fraud, the data found that 34% of 25–34-year-olds are concerned their bank’s security measures are not fit for purpose. Figures from UK Finance in May found that £1.2bn was stolen by criminals in 2022 through transaction fraud. That equates to more than £2,300 every minute. Authorised Push Payment (APP) fraud cases have increased by 22%.
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Whilst older generations are often presumed to be the main target for fraudsters, the data found that 24% of over 55’s have been a victim or know someone who has fallen foul of fraud. Only 14% think their bank’s security measures are not fit for purpose.
Over 55s are losing the most money
The research also found that those aged over 55 are losing the most money to fraud when it does happen, with fraudsters attempting to take £938 on average from them in each attack.
To counteract the rise in banking fraud, banks are constantly reviewing and integrating new safety measures into their systems, such as location tracking to identify when a card is used in an unusual or different location to the customer, and instant spending alerts to notify customers when their card has been used.
While these measures are designed to protect customers, an increasing number of people are concerned about their intrusiveness. 40% of consumers would like the ability to opt out of participating in these security measures, according to the survey.
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By GlobalDataRichard Kalas, Client Solutions Director, Retail Banking at GFT UK, said: “This data highlights the growing issue of fraud for younger banking customers, who are more willing to adopt new technology and share data. As banks continue to champion digital innovation, they must find a balance to ensure their customers feel protected with the least friction or intrusion.”
