Tag: finance

Criminal Justice budget in the spotlight at Holyrood

MSPs on the Scottish Parliament’s Criminal Justice Committee are to examine all areas of the Scottish Government’s criminal justice budget in the coming weeks, and consider whether the current funding patterns are sustainable, effective and achieving good outcomes.

Ahead of making recommendations to the Scottish Government on how it spends money on justice services, the Committee is looking to hear opinions on funding for bodies such as prisons, courts, police, fire and rescue, victim support and community justice initiatives.

It will also consider whether funding is in place to support the sector to recover from Covid, and whether any of the changes brought in to help cope with the pandemic may lead to longer term savings, if those were desirable and made permanent.

Speaking as the call for views was launched, Criminal Justice Committee Convener, Audrey Nicoll MSP, said: “Criminal Justice services play a crucial role in keeping Scotland safe, supporting complainers and victims of crime, working to rehabilitate offenders, and diverting people who are at risk of doing wrong.

“Our Committee wants to take a wide look at the funding for these services – public and voluntary – and examine whether what we have in place supports the justice system to do what we ask of it.

“It goes without saying that we will need to consider the impact of Covid-19 on the justice sector’s budgets.

“We asked a great deal of those working on the frontline and administering justice throughout the pandemic.

“And while there may be savings from some of the new ways of working, overall, the sector will need a lot of help to recover from the pandemic – for instance, to deal with the huge backlog of trials.”

The call for views can be found at this link.

Specifically, the Committee is seeking views on:

The impact of COVID

• Whether the Scottish Government is providing enough budget for the criminal justice sector to recover from COVID-19?

• What the cost will be of making permanent some of the temporary changes  brought in because of the pandemic (if these are to become permanent)?

• Whether organisations in the criminal justice sector have enough budget and staff to be able to cope with a return to pre-pandemic levels of working (e.g. expected growth in the number of court trials)?

• Whether there have been any savings and efficiencies because of the different way of working during the pandemic, what these savings have been used for elsewhere, and could they be kept once the pandemic is over?

• Where are the opportunities for future reform and savings?

The budget provided for the Crown Office and Procurator Fiscal Service (COPFS)

• Whether the Scottish Government is providing enough budget for the work expected of the COPFS?

• What is the expected impact of the budget of the COPFS from the recent cases of malicious prosecution?

Prisons, prison reform and secure care

• Whether the Scottish Government is providing enough budget for the work expected of the Scottish Prison Service?

• Whether enough money has been allocated for the future modernisation of the prison estate beyond the work currently underway at HMP Glasgow and HMP Cornton Vale?

• Whether the current funding model for secure care in Scotland needs reformed?

Police and fire and rescue

• Whether the Scottish Government is providing enough budget for Police Scotland and the Scottish Fire and Rescue Service?

• In particular, is there enough budget to modernise the services, their buildings, vehicles and equipment etc?

The support for victims of crime

• Whether the Scottish Government is providing enough budget to enable organisations to support victims of crime?

Legal aid

• Whether the Scottish Government is providing enough budget to enable people to access justice through the support provided by legal aid in criminal cases?

• Whether further budget and reforms are necessary to tackle the problem of accessing legal aid in remote and rural areas of Scotland?

• Whether the Scottish Government is providing enough budget to attract people to work for organisations providing services funded by legal aid (e.g. defence solicitors)?

The Scottish Government’s Programme for Government

• What money will be required to finance the different criminal justice policies set out in the new Programme for Government and whether any new and extra finance has been allocated for the various initiatives?

2050 Climate Group present: Digital Youth Summit

4th September 2021, 10.00 -15.15 BST

With COP26 just around the corner, we are happy to announce our Youth Climate Summit, ‘Let’s Talk COP26’, taking place digitally on the 4th of September from 10.00 – 15.15 BST.

This event will host a diverse variety of speakers and workshop sessions grounded in 5 key themes up for discussion on COP26’s presidential programme: nature-based solutions, adaptation and resilience, finance, energy transition, and clean road transport.

These sessions will be led by youth activists, community groups, and industry leaders from organisations such as Friends of the Earth Scotland, the Black Environmental Network, and the Loss and Damage Youth Coalition (to name just a few!).

By engaging specifically with the event of COP26 and its themes, ‘Let’s Talk COP26’ strives to unpack a political decision-making process that lacks transparency and marginalises those experiencing the climate emergency first and worst. This event will tackle the key issues being discussed at COP26 so that we can take informed and effective youth action moving forward.

This event is free and open to young people aged 18-35 in Scotland and beyond. Sign up now!

https://hopin.com/events/2050-climate-group-summit

Consumer finance expert: How to fix finances for Summer

Relaxed restrictions in Scotland offer the chance to make the most of many of the much-missed activities that the pandemic put a stop to, from concerts to theatre trips and holidays abroad. But before you splurge on some much-missed activities, consumer finance expert PAUL WILSON explains ways you could get your finances in order first. 

With over 20 years experience in consumer finance, Paul has highlighted common pitfalls that consumers often fall into and the simple ways that consumers can get their finances in check whilst still making the most of the summer. 

“Many Scots will be excited to make the most of the things that they’ve missed out on in the past year, from concert tickets to holidays abroad. But, whilst there’s temptation to splurge and ‘go all out’ this summer to make the most of the relaxed restrictions, it’s important to make sure that spending doesn’t get out of control.

“Having worked in the finance industry for 20 years, some of the most common money management mistakes I see people make are not actively monitoring and striving to improve their credit score, not setting and sticking to a monthly budget and spending beyond their means on what often turns out to be frivolous.

“As things open up more, it’s important for consumers to enjoy their money, without falling back into bad habits they may have broken in lockdown. There are simple tricks and spending behaviours that can be adopted to make sure people keep their finances in check.”

Cancel those unused, or under utilised, subscriptions

“For many of us, TV and entertainment subscriptions were an essential part of getting through lockdown. But as restrictions lift and it’s easier to do more of the activities that used to fill your time, you may find that some subscriptions go unused.” 

“Check your subscriptions. It’s easy to sign up for a new subscription service – particularly when many companies offer free trial periods or low cost sign up offers – and then forget to cancel it. Or perhaps you have a number of subscriptions that you do use, but you could ask yourself how essential they really are. If you can live without it then you could save money by cancelling the subscription or choosing a cheaper alternative.”

Update your utilities providers

“The summer months are a great time to review your insurance and utilities providers. As things open up more, life admin tasks like this can fall by the wayside, so set aside some time to check your spending and see if you can get a better deal.” 

“Shop around for all of your insurance and utilities. Generally speaking, loyalty doesn’t pay when it comes to products such as insurance, energy, broadband and TV, and there are usually cheaper deals for an equivalent product out there. So when it comes time to renew one of these products, don’t just accept the renewal price – use a price comparison service to check for the best deals available.” 

Budget for your new lifestyle

“As tempting as it is to splurge this summer, make sure you properly budget all of your new spends, from setting aside a budget for going out and leisure activities to factoring in how much you want to spend on drinks at the pub or online shopping.”

“Calculate how much you have coming in each month and how much your essential financial commitments are (e.g. mortgage/rent, transport costs etc.) and therefore what you can afford to put away into savings and what your disposable income is. Once you have your budget – stick to it! Post it up somewhere in your house where you will regularly see it or set reminders on your phone to prompt you to check how you are tracking against your budget.”

Get on top of the weekly food shop

“For many of us, staying at home more often in lockdown meant spending more money on food and treats. So, the relaxing of restrictions is a great time to get on top of your food bill.”

“Save money on your weekly food shop by planning a menu and a shopping list to ensure you only purchase the items you need. Embrace batch cooking and freeze portions to be eaten at a later date – this may help avoid being tempted to use costly food delivery services when you haven’t got anything in for dinner. Consider choosing one of the budget supermarkets such as Aldi or Lidl for the bulk of your shop and downshift from brand name items to own-brand.” 

Spend savvy

“With more people getting out and about and making the most of the summer, there’s more incentive to buy new things, from new holiday clothes to treating yourself to see a band you haven’t been able to see live since 2019. So, if you’re planning on treating yourself, try using comparison sites that offer savings incentives in order to get your money to go further.”

“There are a number of ways you can save money when you are purchasing online. Firstly there are cashback sites that offer money back in your pocket when you purchase via a special tracked link – it costs you nothing extra, takes just seconds longer, and if you were going to buy the product anyway it’s a no brainer. Secondly there are browser extensions and apps you can use to hunt out bargains. For example, InvisibleHand is a chrome extension that runs in the background of your browser and automatically notifies you if it can find the product you are shopping for at a lower price on another site. Similarly, Honey is an extension that automatically finds and applies discount codes at the checkout when you shop online.”

Think about your credit options for big purchases

“It’s great to see the travel corridor opening up and more countries being added to the green list so that everyone can get a much-needed summer holiday. But as tempting as it is to go away, it is important to properly review your finances before committing to a summer holiday.”

“Save up for big purchases wherever possible rather than putting them on credit. Taking the time to save the money can give you time to evaluate if the purchase is really something you want or need. If you have the cash up front it will save you money on paying any interest and avoids any potential damage to your credit score through missed repayments. And remember, it’s tempting to pay for the holiday of a lifetime on a credit card, but then you’ll be paying for that holiday many years after you’ve come back.” 

Track your spending

“It can be very easy to lose sight of how you are spending your money so use a money tracking app linked to your bank account to ensure you keep track of every pound leaving your account.”

“Many money-tracking apps let you categorise spending and easily set budgets for different categories, such as shopping, eating out and groceries. This allows you to properly keep track of your personal finances and stick to your budget, as helpful notifications will let you know when you’re close to your budget for each category.”

Put savings away

“Don’t let the excitement of relaxed restrictions stop you from putting money away for a rainy day. Try to put a small amount away as soon as you get paid, or try saving a few pounds a week to kick-start your savings pot.” 

“If you do have any left over cash at the end of the month, put it in a savings account and try to build up an emergency fund. As a general rule, you should ideally have 3 months worth of critical expenditure (rent, food, bills etc) in your savings account to deal with unforeseen circumstances such as a redundancy or replacing an essential appliance.”

Save on travel to work

“One of the best things that came out of the pandemic is the uptake of cycling, with millions of Brits getting on their bikes to enjoy exercise and space outside in lockdown. Whilst some offices are inviting staff back to work in the office, a blended approach of remote and office-based working has been adopted by many businesses, which takes the pressure out of travelling in peak commuting times.”

“If you can sacrifice the convenience factor, you can save some significant money on fuel and parking by ditching the car and walking or cycling whenever possible. For example, could you walk or cycle to work? Even if it’s just one or two days per week or even just when the weather permits, the money saved can quickly add up.” 

“If I were to choose one of these tips as the most important, I would say that the additional benefits of walking or cycling – both in terms of the benefits to an individual’s health but also to the environment – make ditching the car more frequently the most important tip.” 

Paul Wilson is a consumer finance expert at Financial Conduct Authority authorised and regulated credit broker Little Loans.

Cashless is killing tips

Over a third of Brits won’t tip via card due to lack of confidence it goes to the right person

A recent report from UK Finance has revealed the UK is another step closer towards becoming a cashless society as the number of payments made using notes and coins last year declined by more than a third.  

As more businesses decide to go cashless, this new move towards a fast-tracked cashless society is having devasting effects on the nations tipping habits, according to a new report. 

The 2021 Tipping Index commissioned by card payment specialist takepayments Limited, surveyed over 2,000 consumers to compare how tipping attitudes and behaviours have changed through the pandemic. 

The findings reveal that pre-pandemic, cash was the most favoured payment method for tipping (91%) as almost two thirds (64%) of those that tip this way said they felt more confident the tip would go directly to the person who served them. 

However as more businesses are no longer accepting cash, the research reveals less Brits are opting to carry cash as almost one in five (18%) said they no longer carry cash which they would usually leave as a tip. 

This new cashless movement is impacting tipping habits as one in four (23%) said they would only leave a tip if they had spare cash on them and one in four (24%) said they would specifically bring cash especially to tip.

Coronavirus and hygiene fears play a part in people tipping less too, as almost one in six (14%) said they are now less likely to leave cash as a tip due to hygiene or health reasons.

While almost three in ten Brits recognise tips are a big part of peoples income, more than a quarter (27%) state that while places no longer accept cash and only accept card payments, tipping isn’t always possible as Brits lack confidence that tips made by card payments go directly to the person who served them (35%). 

And for those Brits that do feel confident tipping on card, more than a third (35%) admit they leave a bigger tip when paying cash. 

Sandra Rowley at takepayments Limited said:  “While the sectors which commonly involve tipping can finally re-open, the professions who rely on tips to top up their income are unfortunately continuing to struggle due to the nation’s lack of knowledge around tips and card payments. 

“There is a misconception around card payments and tipping which needs to be highlighted as businesses are able to separate tips from the cost of services when taking card payments.

“The government is set to announce a new proposal for a Tipping Bill next month which will hopefully give the public more knowledge around workers rights and tips, as well as instil confidence around tipping on card.” 

The full findings of the takepayments 2021 Tipping Point Report are available to view here. 

Chancellor hails Scotland’s pivotal role in future of UK economy

  • The Chancellor will visit Scotland today (29 July 2021) to meet people and firms supported by the UK Government’s Plan for Jobs throughout the pandemic.
  • In advance of the trip, Rishi Sunak hailed the economic strength of the Union and said Scotland’s “innovation and ingenuity” would be key in powering the UK’s future global economy;
  • He will meet firms in sectors ranging from tech to tourism and see how Scotland is helping drive the UK’s transition to net zero ahead of the COP26 summit in Glasgow later this year.

The Chancellor has hailed the economic strength of the union ahead of a visit to Scotland where he will see first hand how the UK Government’s Plan for Jobs has supported businesses and families during the pandemic.

Rishi Sunak will meet Scottish businesses and individuals in Edinburgh, Glasgow and Fife to discuss how they are recovering from the crisis and find out more about the ways Scottish firms are creating jobs and playing a key role in the UK’s green recovery.

Ahead of the visit, he hailed the economic strength of the union and said Scotland’s “innovation and ingenuity” would be key in powering the UK’s future global economy.

Chancellor of the Exchequer, Rishi Sunak said: “We’ve come through this pandemic as one United Kingdom – with our Plan for Jobs supporting one in three jobs and tens of thousands of businesses across Scotland.

“Thanks to the strength of our Union we’ve deployed the fastest vaccination rollout in Europe and our economy is rebounding faster than expected.

“It’s vital this continues, and Scotland’s innovation and ingenuity will be key in creating jobs, powering our growth and driving a green recovery.”

Since the start of the pandemic the UK government has delivered one of the world’s most generous packages to support, create and protect jobs across the UK.

In Scotland one in three jobs have been supported through the pandemic, over 900,000 people in Scotland were furloughed, more than 90,000 businesses have received loans and £1,535 billion has been paid in self-employment support.

People in Scotland are benefitting from the UK Government’s Plan for Jobs – the Kickstart scheme is already helping thousands of 16-24-year-olds into work, Job Entry Targeted Support (JETS) Scotland is providing up to six months of targeted support and 13,500 new Work Coaches have been recruited across Great Britain to give tailored support to people out of work.

On today’s visit, the Chancellor will travel to a number of businesses – both small and large – to meet business owners and furloughed employees who have returned to work after their jobs were protected through the UK-wide scheme.

With just under 100 days until the COP26 summit in Glasgow, he will also see how Scotland is harnessing the power of offshore wind, a sector which supports 2,800 jobs in Scotland and is key in helping the whole of the UK reach our climate goals.

The Chancellor will also meet representatives of Scotland’s financial services sector to thank them for keeping call centres and branches open over the pandemic as well as distributing billions of pounds through UK government loan schemes.

He will discuss his vision for the future of financial services – a sector which accounts for 153,000 jobs in Scotland (financial and professional related services).

He will also see how Scotland’s culture sector is preparing for the summer ahead, as it looks forward to welcoming back locals and tourists who wish to revel in Scotland’s rich cultural heritage.

Edinburgh’s Maison Sport secures Future Fund investment

Game-changing ski instructor platform Maison Sport is among only a handful of travel businesses to secure finance from the UK Government’s Future Fund.

The trio behind the innovative tech start-up, which connects skiers and snowboarders with some of Europe’s best instructors, set out to apply for the funding support in May 2020, at the height of the pandemic, when the scheme launched.

With the travel sector hit hard by the impacts of Covid-19, Maison Sport felt the effects of closures at countless resorts across Europe and ski holidays cancelled for many.  The funding has given the tech start-up a much-needed financial boost, allowing the platform to continue to support independent instructors across Europe.

The Future Fund – developed by government and delivered by the British Business Bank – was established to support the UK’s innovative businesses affected by Covid-19. It was created for businesses unable to access other government business support programmes, due to being pre-revenue or pre-profit and typically reliant on equity investment. 

With a third-party investor willing to support the growth and ambitions of Maison Sport, the trio of founders were able to apply for the convertible loan which saw the government match their investor funds.

It is the latest success in Maison Sport’s fundraising drive to ensure the business survives and thrives through the pandemic.  

Over the past six months, the business has secured further funds from their existing advisory board members Kevin Byrne, Founder of Checkatrade.com and serial entrepreneur Lorenz Bogaert, as well as new investor, Gareth Williams, Co-Founder of Skyscanner. This will enable Maison Sport’s expansion into new markets globally and will help to grow their impressive international portfolio of instructors and customers.

Started by three former ski champions – brothers Nick and Olly Robinson and Aaron Tipping – Maison Sport has more than doubled the number of instructors in its marketplace throughout the pandemic. It is currently represented in more than 350 resorts, with over 1,200 qualified instructors across France, Switzerland, Italy and Austria.

The aim now is to expand into four new markets this year – Scotland, Norway, Sweden and Japan – with plans to move into Asia and South America next year.

Founder and CEO Nick Robinson says: “We’ve worked so hard to remain positive and ambitious over this past year or so. The Future Fund initiative has really given us a boost to move on to the next level.

“As the only platform dedicated to independent instructors, we’re really optimistic about the way Maison Sport is evolving and we’re looking forward to spreading our vision globally.”

Future Fund, delivered by the British Business Bank, has allowed companies to apply for a convertible loan with private investors at least matching the government investment. 

For more information visit www.maisonsport.com

Investor confidence returning, says new research

Confidence levels are up, Millennials make their mark and interest in ethical investing hits new highs

Confidence levels amongst UK investors have risen 20 points (62 – 82) in the last 12 months according to new research amongst 1100 UK investors (£10k+).

The Investor Index, now in its second year, is conducted jointly by London-based communications agency AML Group and research agency The Nursery Research and Planning and was launched in April 2020 to assess the immediate impact of Covid 19 on investors and the UK investment marketplace.

The first report of its kind to provide an objective overview of the industry based on hard data,the study was welcomed as a barometer of post-Covid investor behaviours.

“57% of UK investors have changed their investment strategy since the pandemic started”

One year on, and still in the grip of the pandemic, the 2021 study has revealed some significant changes and ‘recalibrations’ amongst investors.

Confidence returns – but not to pre-pandemic levels

Over the past 12 months, confidence levels have risen most amongst older investors (55+) up 30 points (54 – 84), investors that are retired up 27 points (57 – 84), those that use financial advisers up 31 points (65 – 96) and investors with a portfolio of £200k+ – up 38 points (55 – 93).

The study has also revealed a disparity in gender confidence levels – with men indicating a 25 point rise over the last 12 months (61- 86) compared to a rise in confidence levels of just 10 points among female investors (65 – 75).

However whilst the results are cause for some degree of optimism – investor confidence levels are still 18 points down from pre-Covid levels.

Gen Z/Millennials Vs Baby Boomers – the emerging generational divide

10% of UK investors have started investing since the pandemic began – and of those new investors three-quarters (74%) are under 35s.

It’s a changing landscape with the younger investor bringing different attitudes and priorities to the investor table.

89% of under 35s have changed their investment strategy over the last year vs. 31% of 55+ investors. Younger investors are also increasingly looking to ESG products – with 27% including responsible investments in their portfolio compared to only 4% of investors aged 55 and older. Younger investors are also more focused on the long game – with 30% looking to longer term investments compared to 8% of investors 55+.

When it comes to investment decisions, younger investors are increasingly turning to family (40%), banks (30%) and friends (27%) for advice.

It’s a gift – investors demonstrate a change of attitude

57% of UK investors have changed their investment strategy since the pandemic started – with a focus on products offering ‘long term growth’ (46%) over ‘short term growth’ (30%).

Investors are increasingly concerned about their children’s financial security. 70% of investors are aware of the £3,000 wealth transfer allowance with 38% having given £500 or more over the last 12 months – with children the biggest recipients (72%). Indeed the average amount gifted in 2020 was £8087 compared to £5421 pre pandemic (2019) – a 49% increase and a clear indicator of the want for investors to safeguard futures for loved ones.

How invested is the UK investor in Responsible Investing?

Investors feel that ethical/socially responsible financial products are more important now than at the same time last year – up 9 percentage points (23% – 32%) with three in ten of those surveyed stating that they believe that these products will be more important in the future – up six percentage points (24% – 30%).

However despite investors acknowledging the importance of ESG/RI there is a continuing perception, despite contrary evidence, that it carries a performance penalty with investors ‘prioritising financial security over wider ethical considerations’ – up five percentage points (23% – 28%).

Younger investors look to DIY platforms

Since the start of the pandemic in March 2020, four in ten investors under 35 (39%) have invested more with DIY platforms – compared to just 14% of 55+. And while the younger investor has indicated a ‘happy to do it myself’ attitude regarding financial planning and investments they are less confident when it comes to their feelings about the industry. Just under one-third of under 35s (29%) are confident markets will bounce back compared to more than half (52%) of investors aged 55+.

Perhaps predictably, younger investors are more tapped into trends and news stories connected to investing.

39% of under 35s cited an awareness of the growth in DIY platforms with 44% familiar with the story around Reddit users driving up the share price of Game Stop and 31% aware of the rise in silver prices. Investors aged 55+ recorded significantly lower awareness across all trends.

Top 10 nine findings:

1. Investor confidence levels (overall index score) – 82 (up 20 points)

2. Confidence levels amongst men – 86 (up 25 points)

3. Confidence levels amongst women – 75 (up 10 points)

4. Confidence levels amongst under 35s – 74 (up 4 points)

5. Percentage of investors who have increased amounts invested since Covid-19 – 36%

6. Changed Investment strategy since the start of the pandemic – 57%

7. Ethical products considered more important now – 32% (up 9 percentage points)

8. Percentage of all new investors (in the last 12 months) that are women – 63%

9. Under 35s who have increased DIY investments since Covid – 39%

METHODOLOGY: 1,100 nationally representative interviews were conducted online in April 2021 from an adult sample with £10,000+ of investments. Respondents were recruited from Dynata’s online access panels. 7 in-depth interviews were conducted with a mix of IFAs and Wealth Managers – also in April 2021.

Extra £14.5 billion for Scotland since start of Covid-19 pandemic

Scotland has benefitted from £14.5 billion of UK government funding to the devolved administrations, figures released today by the Treasury show.

The annual publication of the Block Grant Transparency shows that since the start of the Covid-19 pandemic the Scottish Government has received an additional £14.5 billion, the Welsh Government an additional £8.6 billion and the Northern Ireland Executive an additional £5.0 billion.

This funding has enabled the Scottish Government to provide support to individuals, businesses and public services across Scotland in response to Covid-19 and will continue to support the recovery through 2021-22.

This comes as part of the unprecedented package of support for the whole of the UK throughout the pandemic, with £352 billion spent right across the UK on Covid-19 measures.

In Scotland this included protecting more than 900,000 jobs through the furlough scheme, £294 million in self-employment support, help for businesses and the procurement of vaccines.

Chief Secretary to the Treasury Steve Barclay said: “The UK government is fully committed to strengthening the Union and making sure Scotland has the funding needed to get through this pandemic, with £14.5 billion of additional spending over the last year.

“We’ve protected more than a million Scottish jobs and businesses with furlough and support schemes, our vaccine rollout is unlocking the economy, and our Plan for Jobs is levelling up opportunity and helping us build back better across the UK.”

Scottish Secretary Alister Jack said: “From the very start of the pandemic, the UK Government has taken unprecedented action to help people and businesses right across the country.

“That includes our furlough scheme, support for self-employed people, help for businesses, and the hugely successful UK-wide vaccine programmes.

“On top of this direct support, the UK Government has provided an additional £14.5 billion of funding for the Scottish Government. 

“This extensive support, which now enables us to look towards recovery, shows how Scotland benefits from being part of a strong United Kingdom. Never has the value of the Union been more important or more apparent.”

The UK government’s Plan for Jobs is helping to support, create and protect jobs across the UK.

The Kickstart scheme is already helping thousands of 16-24 year-olds into work, JETS Scotland is providing up to six months of targeted support and 13,500 new Work Coaches have been recruited to give tailored support to people out of work.

Which?: Some banks leaving customers exposed to scammers

Some banks can and should be doing more to protect their customers from criminals trying to steal sensitive information, Which? research has found. 

With the last year seeing an increase in scams, many consumers will expect that the companies they deal with in their everyday lives are doing everything they can to protect them.

However, a new Which? investigation has found that some banks are failing to use all the tools available to them to combat scammers, leaving weaknesses in their security systems that scammers could exploit. 

The consumer champion looked into what protections banks were putting in place to protect their customers from receiving fraudulent emails, SMS messages and phone calls.

These so-called phishing attacks are worryingly common. Scammers send legitimate-looking messages that are designed to tempt people into divulging sensitive information, such as bank account details, usernames or passwords.

Phishing scams may try to imitate (or ‘spoof’) banks’ genuine email addresses or domains, sometimes by making slight changes – for instance, by changing ‘.co.uk’ to ‘.com’. 

Banks should be implementing a system that protects web addresses they own or use – known as ‘domain-based message authentication, reporting and conformance’ (DMARC) – to prevent spoofing attacks.

Banks can use DMARC to tell email providers how to handle the unauthorised use of their domains. 

The process of introducing DMARC is frequently done gradually: by initially setting records to ‘none’ (a monitoring phase where no action is taken if DMARC checks fail) before working towards ‘quarantine’ (which moves emails to junk/spam if they fail the checks) and ultimately, a policy of ‘reject’ (which blocks all emails that fail the checks). 

When Which? asked security experts at technology company 6point6 in April to check whether banks offered this protection, some banks were falling short. 

At the time of the investigation, the Bank of Ireland and Agricultural Mortgage Corporation – a wholly owned subsidiary of Lloyds Banking Group – had not yet introduced DMARC.

This could have allowed scammers to forge their email address and send messages that would appear indistinguishable from genuine ones from their bank. Both have since taken action to resolve this. 

The investigation also found that Nationwide, TSB and Virgin Money – nationwide.co.uk, tsb.co.uk and virginmoney.com, respectively – had not set their policies to ‘reject’ all emails that fail DMARC checks. TSB and Virgin Money told the consumer champion that they are working towards this. 

Nationwide said it has security features to protect against spoofing and will ‘look at ways to improve email security, including future enhancements to DMARC security.’ 

The investigation also uncovered that The Co-operative Bank, First Direct, Starling and Tesco Bank had no DMARC system in place for their alternative domains, but did for their primary domains.  

Although The Co-operative Bank has protected its ‘co-operativebank.co.uk’ email address, there are no DMARC records for ‘co-operative.co.uk’ and ‘coop.co.uk’ – two domains that are owned by The Co-operative Group, a separate company not associated with the bank – making them vulnerable to scammers who could pose as The Co-operative Bank using alternative email addresses. 

Since the investigation, Starling and Tesco Bank have now applied DMARC to alternative domains, starlingbank.co.uk and tescobank.co.uk, respectively.

First Direct and The Co-operative Bank told Which? they are reviewing the inclusion of their alternative domains – firstdirect.co.uk and co-operativebank.com – within their existing DMARC policies.

While banks are further ahead than other industries when it comes to implementing DMARC, Which? believes that it is often too hard for customers to tell the difference between a phishing email and genuine communication from banks due to inconsistent practices across the industry. 

This is particularly concerning amid a worrying culture of banks blaming victims for falling for scammers’ tricks, despite their heightened sophistication. This means people often face a lottery to get their money reimbursed under the industry’s voluntary bank transfer scams code.

Which? is calling for all banks to implement DMARC and configure it correctly, setting their policies to ‘reject’, meaning email providers should block any emails that fail these checks. 

Banks should also be clamping down on number spoofing, which involves scammers manipulating caller IDs to mimic the phone numbers of legitimate organisations. To tackle this, Ofcom worked with the banking industry body UK Finance to identify a list of ‘do not originate’ (DNO) numbers – numbers that are never used for outbound calls. 

Most banks had signed up to the scheme at the time of the investigation, apart from The Co-operative Bank and Nationwide – although both have since told Which? they plan to join.

Banks can also protect their SMS headers – the name or number a text message appears to come from – against spoofing by registering with the SMS SenderID Protection Registry run by the Mobile Ecosystem Forum. 

The consumer champion believes that if banks did not include weblinks or phone numbers in their official SMS communications – sensitive information that is prone to spoofing – consumers could feel more secure and be able to spot scams more easily. 

Which? is working on a best practice guide for businesses to help raise standards of SMS communications and bring greater consistency to how they protect consumers. 

Jenny Ross, Which? Money Editor, said: “It has never been harder for people to know whether they’re receiving genuine communications from their bank, or being tricked – so it is crucial that banks take every measure to protect their customers from these devastating scams. 

“These include implementing email scam protections properly and no longer putting phone numbers and links in messages, to ensure customers feel safe and can bank with confidence.”

15% of owner-managed businesses are still in survival mode

“11% reported that it is likely they will have to make redundancies in the next 3-6 months putting a potential 1.85 million jobs at risk across the UK”

Owner managed businesses coming out of the third lockdown are still struggling with the impact of Covid-19 and an uncertain economic outlook, according to the Association of Practising Accountants (APA):

  • 11% reported that it is likely they will have to make redundancies in the next 3-6 months putting a potential 1.85 million jobs at risk across the UK
  • 24% reported a negative or very negative impact on their business since the UK left the EU
  • 53% of respondents identified uncertain trading conditions as their biggest single challenge
  • 15% cited Brexit supply chain issues as their single biggest challenge

Nonetheless:

  • 84% of respondents reported that they were either confident or somewhat confident that they would be able to access the finance that they needed over the next 6 months with anecdotal evidence suggesting that the major banks were continuing to lend
  • Longer term 54% were more positive about their economic prospects outside the EU while 46% were less positive

The research among 435 owner managed businesses across the UK was carried out between April and May by the APA, a network of 17 leading business advisory firms who represent over 14,000 of these businesses.

Commenting on the findings APA Chairman Martin Muirhead said: “What is clear from our research is that a significant minority of owner managed businesses who have managed to pull through the last 12 months are still in survival mode with uncertain trading conditions being the biggest concern to a majority.

“Nonetheless there is also evidence to suggest that those businesses that have managed to weather the impact of Covid-19 are now more resilient and that existing and proposed Government support measures have generally been well received.

“Over the coming months it is vital that Government maintains a flexible and targeted approach to business support focusing resource on those sectors where there is the greatest need. Owner managed businesses form the backbone of the UK economy and need continued, targeted support as we emerge from this third lockdown.”