Banks have buried their heads in the sand when it comes to victims of fraud – comment from Peter Janes, Shieldpay

After news today from the Financial Ombudsman that big banks are receiving increasing numbers of complaints over compensation for fraud, Peter Janes, co-founder and CEO of secure payment provider Shieldpay, said: “Banks have buried their heads in the sand for too long when it comes to supporting victims of fraud. It’s only now, as we hit record numbers of complaints, that change is slowly starting to trickle through the banking industry. And, while committing to better levels of compensation is a welcome step, it’s simply firefighting, rather than tackling the source of the problem. Banks must take advantage of the increasingly sophisticated technology that is available to stay ahead of the fraudsters, stop customers becoming victims and reverse a worrying trend that could easily spiral further out of control.

“It’s vital that increased safety checks are put in place to protect people when they making payments online. Adopting new solutions – like Shieldpay – that verify the identity of both sides in a transaction and hold the money securely until both sides agree they’re happy, can eliminate fraud risk.”