UK Financial Complaints Hit Six-Year High in Second Quarter of 2024

The Financial Ombudsman Service (FOS) has reported a significant surge in financial complaints in the UK, with 8,734 complaints received between April and June this year. This marks the highest number of complaints in a quarter since 2018.

Authorized push payment (APP) fraud has been identified as a major contributor to the rise in complaints, accounting for more than half of the total. This type of fraud involves online transfers made with the consent of consumers, often as a result of social media scams.

Victims of APP fraud often unwittingly transfer money to scammers using debit and credit cards after being lured into so-called investment opportunities on social media. FOS staff have highlighted the need for consumers to be vigilant when engaging with online investment opportunities.

In terms of complaint outcomes, 44% of fraud-related complaints were upheld by the FOS, compared to 37% of other complaints. Some of these cases meet the conditions of the bank’s voluntary compensation guidelines, which will be replaced by mandatory compensation regulations for banks and payment institutions in October this year.

FOS chief executive and chief ombudsman Abby Thomas expressed her disappointment at the rise in complaints, stating: “The experience of being a victim of fraud is horrific both financially and emotionally. So it’s disappointing to see the number of complaints rise to another level.”

Thomas emphasized the importance of victims coming forward, saying: “We often hear people feel embarrassed when they’ve been a victim of fraud, but these crimes can be complex and incredible and no one should be afraid to come forward.”