Banks and other financial firms have rejected over a million new customers and cut off 370,000 existing ones due to financial crime concerns, Britain's Financial Conduct Authority said on Tuesday. The watchdog published findings from its first annual financial crime review based on surveys of 2,100 regulated firms until December 2017, showing the scale of cybercrime in Britain's biggest economic sector.
Banks should arm themselves with better technology to tackle crime such as phishing and identity theft, now the most widespread fraud risks being faced, said Megan Butler, the FCA's executive director of supervision for investment, wholesale and specialist firms. Phishing refers to fraudulent emails from someone posing as a bank or other firm asking for individuals to reveal their passwords or credit card details.
Cybercrime in general now accounts for nearly half of all recorded crime in Britain, Butler noted. Firms sent 2,117 terrorism-related reports to the National Crime Agency, with 13,000 restraint orders to freeze customer accounts. Over 1.1 million prospective customers were refused services due to financial crime concerns, with a further 370,000 existing customer relationships "exited" for the same reasons, Butler said.
Banks have faced criticisms for cutting off individuals and companies from banking services without giving clear reasons, raising concerns among lawmakers.