The banking industry’s answer to 999 now covers nearly all UK current accounts as Monzo joins the anti-fraud service, with the digital lender recently facing criticism for its performance in tackling scams.
Monzo, which now boasts more than 9m British customers, has become part of the 159 hotline created by Stop Scams UK, an industry body backed by the Financial Conduct Authority and Ofcom.
Ringing the 159 number puts callers directly through to staff at their banking provider, who can give advice to help work out whether they are being targeted by scammers.
The scheme went live in September 2021, initially covering around 70 per cent of UK current accounts. With the addition of Monzo, it now covers around 99 per cent.
Its 17 members include all the major high street banking groups, as well as digital challengers Starling and Tide. The service has received more than 560,000 calls since its inception, with 233,000 of these coming last year alone.
Ruth Evans, chair of Stop Scams UK, said the service’s rapid growth in use “clearly demonstrates both its value and need”.
Monzo’s entry comes after it was listed by the Payments Systems Regulator last October as one of the major banks most hit by fraud and least likely to refund customers.
The bank fully reimbursed just six per cent of customer fraud claims in 2022, while TSB refunded 94 per cent. Meanwhile, it came top among major banks for the rate of customer transactions reported as going to scammers at 141 per every million.
Ashley Hart, director of fraud at Monzo, said at the time that its users were “disproportionately affected by purchase scams” and called on social media firms to do more to prevent fraud on their platforms. He added that the bank had invested in “cutting-edge technology” to protect customers.
According to the Home Office, fraud is the most common crime in England and Wales, accounting for around 40 per cent of offences.
UK consumers are expected to have lost more than £1bn to fraudsters last year. Latest data from banking trade body UK Finance showed scammers took £580m from Britons in the first half of 2023.
Hart commented on Tuesday: “Impersonation scams cost UK customers £170m a year, which is why we’ve partnered with Stop Scams UK and joined 159, enabling our customers to call us quickly if they’re worried they’re talking to a fraudster.
“This is in addition to the protection offered by our industry-leading Call Status feature, which tells customers if they’re on the phone to us or not. This is currently used on average 700 times a month to report suspected fraud, stopping these criminals in their tracks and protecting our customers from the emotional and financial stress these crimes can cause.”
Stop Scams UK has also introduced a new “Intelligent Voice Response” system to better route calls and enable 159 to support a wider number of banking destinations.
