Firms believe the crime consumers are most at risk of is pension liberation fraud, according to the FCA’s first annual financial crime survey published today.
The study of over 2,000 UK firms in 2017 gives a collective view of the activity being undertaken by firms to combat financial crime across the industry for the first time.
The watchdog says the data represents an important step as historically, it has been difficult for agencies to acquire robust figures on financial crime.
The fraud types for which customers were most often identified as the victim were pension liberation fraud where people are misled into transferring their pension pot early and incur a big tax penalty.
Account takeover and debit card fraud were viewed as the next greatest threats to consumers.
Meanwhile, industry was felt to be more often the victim of expenses fraud, loan repayment fraud, and mortgage fraud.
The watchdog’s survey indicate the industry collectively employ 11,500 full-time equivalent staff in financial crime roles.
It also estimates the financial services industry is spending over £650m annually in dedicated staff time to combat fraud, laundering and other financial crimes.
The government has been working to combat fraud and included introducers in revised proposals to cold call legislation announced in the last Budget.
The move means that IFAs will now be affected if they use any company that finds new clients through cold-calling – even if they provide these clients with high-quality advice afterwards – and they will be banned from working with such firms.
Citizens Advice figures from 2013 claim 97 per cent of pension fraud cases stemmed from cold-calling and figures produced by the FCA over the summer said each victim of pension fraud lost £91,000 on average in 2017.