Financial fraud cost Britons £2.1m every day last year
UK residents lost on average £2.1m a day in 2016 as a result of financial fraud, adding up to £769m, a rise of £14m on the previous year, according to research by industry body Financial Fraud UK. It revealed 75% of people surveyed were worried about falling victim to some sort of financial scam, while 68% feared for a family member. Katy Worobec, director of FFA UK, called for collective action to be taken by banks, police and customers. In a separate study, fraud prevention service Cifas revealed identity theft rates hit an all-time high of 173,000 cases last year.

Banks and financial firms are failing in their attempts to halt the growing tide of fraud gripping Britain, official figures released by the industry body indicate.

In 2016, Britons lost £2.1million every day as a result of financial fraud, with the overall total hitting £769million – up £14million compared to the previous year.

The rising scale of financial fraud means three quarters of people are now worried about falling victim the research by Financial Fraud UK reveals, while 68 per cent fear for family members.

Financial fraud: Industry body FFA UK says that fraud losses grew last year

In recent years, This is Money has seen the number of scams grow and in many cases, refunds refused by banks, leaving customers in limbo with the Financial Ombudsman and potentially thousands of pounds out of pocket.

For this reason, we launched our Beat the Scammers hub page last year to collate information about all of the terrifying scams in one place.

Katy Worobec, director of FFA UK, said: 'Tackling financial fraud is a priority for our members and a great deal of progress continues to be made.

'However, as today's figures highlight, this remains a significant problem with fraudsters using increasingly sophisticated methods to circumvent bank technology and target victims.

'While the payments industry stops six in every 10 pounds of attempted fraud, it cannot solve the problem alone. Collective action is needed with banks, police and customers all playing their part.'

FIVE TIPS TO BEAT FINANCIAL FRAUD The Take Five campaign is asking people to help protect themselves from financial fraud by passing on simple advice to five loved ones: 1. Never disclose security details, such as your Pin or full password - it's never right to reveal these details 2. Don't assume an email request or caller is genuine - people aren't always who they say they are 3. Don't be rushed – a bank or genuine organisation won't mind waiting to give you time to stop and think 4. Listen to your instincts – if something feels wrong then it is usually right to pause and question it 5. Stay in control – have the confidence to refuse unusual requests for information <!- - ad: https://mads.dailymail.co.uk/v8/ru/money/beatthescammers/article/other/mpu_factbox.html?id=mpu_factbox_1 - ->

FFA UK, along with major banks and other financial firms launched the 'take five' campaign last year highlighting simple steps customers can take to protect themselves from financial fraudsters.

The campaign focuses on financial fraud directly targeting business and personal banking customers, such as email deception, known as phishing, and phone and text-based scams, known as vishing and smishing.

The take five element is designed to remind people that it pays to stop and think.

Tony Blake, senior fraud prevention officer, at the Dedicated Card and Payment Crime Unit, adds: 'There are simple steps that we can all take to protect ourselves and those around us when it comes to financial fraud.

'It is concerning that almost three quarters admit they have never discussed the issue.

'We are encouraging everyone to share the message that it's okay to stop and think before sharing any personal or financial details.

'Taking that moment allows us all the opportunity to follow the simple advice which will better protect us from fraudsters.'

Yesterday, separate research by fraud prevention service Cifas found that identity theft rates have soared to record levels, with 173,000 frauds of this kind logged last year.

The report found nine in 10 fraudulent applications for bank accounts and other financial products were made online. The number of cases has more than doubled in the past eight years.