Complaints to the Banking Ombudsman reached record highs in 2023-2024
Customers swarmed the Banking Ombudsman Scheme in record numbers in 2023-2024 with their grievances, a reflection of unprecedented conflicts between customers and banks, said its latest annual report.
6,054 cases were received by the scheme, averaging more than 500 complaints per month, recording an 8% rise from the previous year and the highest since the scheme began in 1992.
Banking Ombudsman Nicola Sladden (pictured) cited a dramatic rise in complaints related to scams, which soared by 27% – the highest recorded. Scams comprised 949 of the complaints. Sladden attributes this to the development of more creative and sophisticated fraudulent schemes.
Even worse, the financial blow dealt by these scams was much heavier than in previous years. The average loss per scam case rose from $57,000 last year to a jaw-dropping $80,000 this year – resulting in an alarming 40% surge. Phishing and investment scams constituted most reports, with the latter causing the most significant losses. The rise of unauthorised payment scams was observed as a common denominator, where criminals tricked people into disclosing their banking credentials.
Sladden stressed the urgent need for a more unified effort from banks and other sectors to end this troubling trend.
“We have been calling for some time for such an approach. One immediate way to provide better protection for consumers against scams would be to introduce comprehensive, mandatory codes of practice for banks, telecommunication companies, and digital platforms governing their responsibilities in preventing scams and the scope of their liability,” Sladden said.
Apart from all these scams, the high rates of interest, price inflation, and deteriorating economic situation were also included among the litany of complaints the scheme received. Sladden urged banks to be alert of suspicious transactions while being supportive of customers struggling with financial difficulties.
Over 98,000 complaints were received by banks during the year with almost half centred around service issues. Delays, long queues, and long waiting times saw a 9% rise.
To rise above these growing concerns of customers, banks must work proactively to combat scams and services by adopting stronger safeguards to regain the trust and confidence of the customers.
What steps do you think banks and other industries should take to better support consumers, especially in preventing scams and improving service? Let us know in the comments
