Monzo launches new tool to tackle phone thieves raiding savings
The digital bank said the security control tools were the first of their kind to be launched across mobile banking.
Monzo has introduced innovative app-based features to combat the rising tide of smartphone theft and prevent criminals from depleting individuals' savings. The online banking platform claims these security control functions are the first for mobile banking.
These features aim to deter criminals from moving or withdrawing money from customer accounts following phone theft, personal data theft or impersonation scams. The introduction of these safety measures coincides with an escalation in phone theft incidents in recent years, particularly heightened in London.
Monzo's "known locations" feature permits customers to designate a location, such as their home or office, where they must be when transacting or drawing on savings above a certain threshold. Through tracking technology, Monzo can establish if the customer's phone is not in the selected location and halt any transaction attempts.
Customers also have the option to nominate a friend or family member, who must also have a Monzo account, to receive notifications before initiating transactions or withdrawals beyond a certain limit. This trusted individual can then assess if the payment appears safe or raises red flags.
Senior engineer at Monzo, Priyesh Patel, commented on the bank's endeavour to "outpace" defrauding methods by implementing novel in-app tools.
He remarked: "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."
The bank, boasting around nine million customers, has also rolled out a novel third feature that allows users to authenticate a payment by scanning a "secret" QR code sent to an alternative device through their Monzo app, enabling the transaction to proceed.
Mr Patel announced there was "much more to come" following the introduction of the trio of new security measures, which require customer activation.
In London alone, about 90,000 mobile phones, averaging 250 daily, were reported stolen in 2022, as per the latest figures from the Met Police.
A recent survey conducted last month by money insights firm Intuit Credit Karma revealed that approximately one-tenth of UK residents have been targeted by phone thieves within the past five years.
Amidst this backdrop, fraud levels have been escalating nationwide, prompting banks to implement strategies to safeguard individuals from losing their savings to cunning scammers.
According to data from the industry consortium UK Finance, criminals pilfered over £1 billion through both unauthorised and authorised fraud in the previous year.
