Bank transfer fraud

(Jack) #1

Just noticed when setting up a new payee/transfer with Halifax it gives you a little reminder about fraudulent attempts from people asking you to make a payment to them. Maybe it would be a nice reminder for some users to have something similar in Monzo?

(P Burrows) #2

I like that, often people in a panic will do things like this. It’s nice to have little warnings that could save people a lot of money and stress.


Are there any studies/statistics on whether those are actually effective?

At my previous company we had a similar issue where scammers would get people to pay through an irreversible payment method and then run away with their money. We did have a similar message but it seemed like it had no effect and stupidity with the promise of a quick buck (or in our case avoiding our 10% fee) still took over, often with sad (but predictable) outcomes.

(#savetheseabass) #4

Does this act as a disclaimer to prevent the bank being liable to repay fraudulent transactions? :face_with_raised_eyebrow:

(Jack) #5

Who knows, it doesn’t let you continue if you select certain options.


Would the bank be liable for that type of fraud anyway? I have always been under the impression that this would not be the bank’s liability, regardless of whether such a warning exists. It’s really not like the bank could actually prevent it (in general).

As for this warning message: certainly better than the santander equivalent, which is a selection of fairly wordy bullet points, which I don’t think one would actually read, if one was in a bit of a panic, or simply in a rush.

(#savetheseabass) #7

Sorry, I should have said presumed liability. A large section of the public assume it is. There’s been a rake of stories in the tabloids recently with people complaining about how they’ve been scammed by these transfers and the evil bank won’t compensate. Sometimes they backtrack and repay after an outcry in the comments section but it’s rare. Might stop some of the bad publicity for them

(P Burrows) #8

Right now banks are not liable for faster payment fraud. It’s deemed a scam and recovery of funds is on a best endeavours basis. Although it’s almost impossible to get it back as a fraudster will move this money out when fraudsters convince you to transfer your money.


If it was a large amount to a new payee and something like that popped up I’d be cool with it. But to be honest it would probably annoy me :smile:

(Nick) #10

No. The account hasn’t been compromised, and the account owner has authorised the transaction. Even though the customer has been deceived into making this transaction, the liability for this is firmly with the customer and not with the bank.

It’s the same if a customer is tricked into sharing their OTP key with a fraudster. The liability is with the customer, not the bank.

More than likely that sort of situation is precisely what Halfix are attempting to head off. That and if the customer still manages to go through with a fraudulent transfer, they can say “Look, we did specifically warn them” if the press try to get involved. That is, it’s perhaps equal parts helping the customer and covering their own backs.