FOS anticipates 37,000 fraud and scam complaints next year
January 29, 2025
Fraud and Scam Cases on the Rise
Fraud and scams are anticipated to account for 35% of all banking and loan-related cases handled by the Financial Ombudsman Service (FOS) in 2025/26. This excludes credit cards and motor finance commission.
Among the most common types of fraud cases are:
- Authorised Push Payment (APP) scams – where victims are tricked into sending money to fraudsters posing as trusted contacts.
- Cryptocurrency fraud – scams involving fake investments and fraudulent digital assets.
- ‘Safe account’ scams – where fraudsters impersonate banks to convince victims to transfer money to a supposed ‘safe’ account.
The continued rise in fraud cases highlights the increasing difficulty consumers face in detecting fraudulent schemes due to scammers ever evolving techniques.
Over half of the fraud and scam complaints in the first quarter of 2024-25 related to APP scams!
Other banking issues the FOS says it is likely to see include problems with savings accounts, short-term lending, and mortgages.
FOS Encouraging Victims of Fraud and Scams to Come Forward
Abby Thomas, Chief Executive and Chief Ombudsman, expressed concern over the persistently high levels of fraud complaints, stating:
“It’s concerning to see high levels of fraud and scams cases continue to come to our service. People can feel embarrassed to have fallen victim to a fraud or scam, but these crimes can be complex and incredibly convincing, and nobody should be afraid to come forward.”
FOS Consultation on Future Complaints and Redress System
The FOS recently published a consultation on its 2025/26 Plans and Budget, which projects a likely caseload of 240,000 new complaints. To better handle rising case volumes, the FOS is working alongside the Financial Conduct Authority (FCA) to modernise the financial redress framework.
Put basically, this joint Call for Input aims to address:
- How to improve redress mechanisms to keep pace with rising complaint volumes.
- Preventing sudden spikes in complaints that overwhelm financial firms.
- Ensuring efficient compensation for affected customers.
What This Means for Consumers
With fraud cases on the rise, consumers must remain vigilant against scams. If you suspect you’ve fallen victim to fraud, it’s essential to report the issue as soon as possible and seek redress.
How to Protect Yourself from Scams
- Be cautious of unexpected requests for money or personal details.
- Verify the legitimacy of investment opportunities.
- Check directly with your bank before transferring funds.
- Use official channels to report suspicious activity.
If you have been scammed contact your bank immediately and report the fraudulent transaction. Also contact Action Fraud, the UK’s national reporting centre for fraud.
You could be eligible for a refund through your bank’s fraud protection policies. If you need further help recovering your losses consider seeking legal advice or contacting a claims management company for assistance.
Further reading:
About Compensation Adviser
Compensation Adviser is a regulated claims management company specialising in financial compensation claims.
You do not need to use a claims management company (CMC) to make your claim.
It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS) whichever is applicable to your claim.