A legal expert has called for financial authorities to go even further to protect customers after Starling Bank was sanctioned for “shockingly lax” financial crime controls.
The Financial Conduct Authority (FCA) fined the challenger bank £29 million after it discovered inadequate screening processes.
It said Starling “left the financial system wide open to criminals and those subject to sanctions”.
Starling has publicly acknowledged its shortcomings, with apologies and a pledge to rectify procedural flaws and reinforce governance structures.
But Paul Hampson (pictured), chief executive of CEL Solicitors based in Liverpool’s Chapel Street, says it’s not the only case of poor security that is leaving customers at risk and encouraging money laundering by criminal gangs.
Mr Hampson said: “For years we have tried to raise awareness of the fact that banks are simply not doing enough to ensure their customers’ money is properly safeguarded.
“You are now more likely to fall victim to fraud than any other crime in the UK. But time again we see examples where large sums of money have been sent to new accounts without proper checks being in place to raise the alarm.
“When victims approach their bank after being scammed, sometimes out of hundreds of thousands of pounds, they are often fobbed off and left with no option but to seek expert help to get their money back.
“It’s time for the banking industry to take this issue seriously and a more rigorous system be put in place to keep people and their hard-earned money away from these criminal gangs.”
CEL Solicitors, which deals with thousands of cases of fraud and scams a year, has just reached the landmark of recouping £100 million for its clients.
Successful cases include a retired financial advisor who got back £75,000 after being duped in a cryptocurrency scam, and a woman who lost £11,000 of savings to criminals using the image of TV money expert Martin Lewis to lure their victims.
Mr Hampson added: “The rules for preventing these types of crimes are simple.
“Don’t open emails from unfamiliar people or addresses, don’t click on links unless you are absolutely sure they are genuine, and never provide your username, password or bank details if asked.
“If something looks too good to be true then it undoubtedly is. Even if you end up ignoring a few genuine emails due to being cautious, the worst that can happen is that person will have to try again.”
