Banks accused of 'secrecy' after understating fraud figures
LEADING banks came under further pressure to tackle fraud today after it emerged that twice as much money is being stolen from accounts than they report.
Banks are understating the level of fraud
Andrew Tyrie MP, chairman of the Treasury Committee, has written to Barclays, HSBC, Lloyds, RBS and Santander, warning them to be “open” with consumers.
His committee heard evidence last month that the figures published by banks may be understating the level of fraud in the banking system.
Crime agencies have also said they have little idea of the scale of cybercrime in Britain’s banks.
The amount of fraud reported by banks may substantially understate the true scale of the problem
Mr Tyrie said: “The amount of fraud reported by banks may substantially understate the true scale of the problem.
“The public should be given the best possible information about the risk of fraud.”
The government’s last estimate was that retail banking fraud cost £475million a year, based on reports from banks.
But an independent investigation in August said 3.6 million banking frauds had been left out of official figures.