Metro Bank Holdings PLC (LSE:MTRO), Starling Bank, TSB Banking Group (LSE:TSB) and Monzo processed the highest number of fraudulent payments among mainstream banks over the last year, research from the payment systems regulators revealed.
Metro and Starling experienced the highest rates of push payment fraud (APP) for every million transactions processed, while TSB and Monzo came close behind.
APP fraud per 1 million transactions:
- Metro Bank – 180
- Starling – 119
- TSB – 93
- Monzo – 67
Push payment fraud refers to when customers send money themselves to fraudsters using their bank account, with victims often tricked into thinking they’re sending cash to loved ones or receiving a deal on a product.
“Reasons for some firms having higher rates of receiving fraud could include fewer or delayed onboarding checks… or weaknesses in inbound transaction monitoring,” the industry regulator said.
In response to the reports, Metro said it has “a range of safeguards”, while TSB added it was “continuing to invest in our controls”.
Starling Bank claims to be “constantly monitoring emerging threats” and Monzo argues APP is a “huge industry issue”.