Monzo launches 'first of its kind' feature to stop fraudsters stealing money
The digital bank has unveiled new security control tools to prevent criminals transferring or withdrawing money from customers' accounts.
Monzo has introduced new app-based features aimed at preventing criminals who steal mobile phones to raid people's savings.
The digital bank claims these security control tools are the first of their kind in mobile banking, as reported by PA.
Designed to stop criminals from transferring or withdrawing money from customers' accounts, these features come as a response to the increasing incidents of phone theft, particularly in London. One feature, "known locations", allows customers to specify a location, such as home or work, where they must be when transferring money or withdrawing savings above a certain limit.
Using tracking technology, the bank can block transactions if the phone is not in one of the chosen locations. Customers can also opt to have a trusted friend or family member with a Monzo account notified before they send or withdraw large sums.
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This person can then assess whether the payment appears safe or suspicious. Priyesh Patel, a senior engineer at Monzo, said the bank was trying to "outpace" fraudsters by introducing these new in-app tools.
He said: “Whether it’s choosing your safety radius with known locations or having a trusted contact sense-check your payments before you make them, these features offer customers peace of mind and force a much-needed moment of pause in a high-stakes situation.”
In addition, the bank, servicing about nine million customers, has introduced a unique feature. Customers can authenticate a payment by receiving a "secret" QR code on an alternate device, which they then need to scan via their Monzo app to finalise the transaction. Mr Patel assured that there was "much more to come" after implementing the three new security measures, though customers will need to opt-in to use them.
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Alarmingly, 90,000 mobile phones - equal to 250 per day - were swiped in London in 2022, according to recent figures from the Met Police. Moreover, a separate poll conducted last month by Intuit Credit Karma, a company offering financial insights, revealed nearly one in ten UK residents claim they have been targeted by phone thieves over the past five years.
Meanwhile, scams are skyrocketing across the nation. Banks are concertedly working on strategies to prevent hard-working individuals from falling prey to fraudsters.A concerning figure shared by trade body UK Finance exposed that rogue operatives managed to loot more than £1 billion through unauthorised and authorised fraud last year.
