While most people are aware that bank fraud is a major crime in the modern era, and the increasing use of digital technology is likely to increase the likelihood of bank fraud, many people are wondering how much bank fraud and crime is actually being reported. There are suggestions that what people are aware of is only the tip of the iceberg when it comes to bank fraud and that there is a huge amount of online crime being undertaken in this area that no gets to hear about.
Some people may dismiss this sort of talk as being the rantings of a paranoid person or someone who has an axe to grind with digital technology but when they hear that it comes from a Police Chief from the City of London, there is a bit more weight attached to these tales. Adrian Leppard was speaking to delegates at a Tech UK Conference and he said that possibly up to 80% of all online banking fraud are not being reported to the police authorities. Perhaps this is the police trying to put the blame off of themselves by saying that they are not being informed of incidents and that it isn’t their fault that criminals are not being caught. However, there is also a school of thought which suggests that it is in the interest of banks and financial institutions to keep a lot of these crimes to themselves.
There are risks involved with Digital Banking
If there is such a massive risk taking place in online and digital banking, it could greatly harm confidence in this industry. Therefore, you could see why there would be an argument for minimising the number of stories that get out, that are reported and which are worked upon by the police. In reality, it may be that the actual truth lies in the middle of the matter, the police force and the banking industry are both institutions well known for manipulating stories to suit their own means and methods, but there is a concern for customers that they do not know the full story of how safe their money is. With intimations being made that the scale of online banking fraud has possibly surpassed the amount of money that drugs can generate, there is a worry that this is an epidemic waiting to explode, and like many stories with the banks, it will be the people at the bottom of the pile who end up suffering the most.
Banks may well be Happy in writing off a number of Complaints
Leppard stated that the gap exists down to the fact that “banks are happy to write off incidents as costs, thereby costing the consumer collectively and funding ongoing cyber-criminality.” This is a shocking state of affairs, indicating that the banking institutions don’t mind of their customers are inconvenienced as long as they are able to maintain a positive image in the community. There is also a worrying concern about the lack of proper information sharing between third parties. There is a lot to be said for open transactions between different parties when it comes to minimising the likelihood of risk, but if what the police is saying here is to be trusted and relied upon, there could be a number of concerns on that regard. Banking institutions are very quick to inform other parties that there is a need to share data and information that keeps everyone informed and in the loop, but they may be less than helpful when it comes to uncovering the dangers or difficulties they face in keeping people safe.
The thing is, it is not as if people could have a smaller level of trust in the United Kingdom banking system than what they currently do. People are sick and tired of the banks making big statements but still not taking responsibility for the economic mess that they caused. Perhaps the banks know that people have very little sympathy for them anyway these days, which is why they are looking to minimise the criticism they would receive if people found that the current digital banking practices were not up to a high enough standard. With so many different stories involved with digital fraud and major players pointing the finger at each other, it becomes very difficult for solicitors to work out the full story when defending clients.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.