To tackle the rising issue of financial fraud in the UK, Monzo has launched three innovative security controls. Known Locations, Trusted Contacts, and Secret QR Codes are designed to protect customers’ transactions and provide peace of mind for those making significant transfers or withdrawals.
These new controls follow the launch of Monzo’s Call Status tool, which tackles impersonation scams by letting customers check in-app whether they’re on the phone with Monzo or not. So far this year, Monzo’s Call Status tool has been used to report over 4,000 fraud attempts.
Monzo’s New Strategy
Monzo’s new controls are part of a broader strategy to shield customers’ finances from evolving fraud tactics. These measures respond to the increasing prevalence of financial crimes, such as phone theft and impersonation scams, which have caused substantial losses across the UK.
Recent crime statistics show that thieves now steal phones more often than cash and credit cards. With victims losing £136.2 million to impersonation scams last year alone. This alarming trend underscores the need for robust fraud prevention measures and the raising of awareness in general.
A Geographical Safety Net
Monzo users can use the Known Locations feature to specify trusted locations, such as their home or workplace, where they can safely conduct transactions. The system automatically blocks any transaction attempted outside these pre-approved locations. This geographical safety net aims to prevent unauthorised transactions, particularly those resulting from phone theft or shoulder surfing.
Enhancing Security with Dual-Device Requirements
This feature gives customers a unique QR code that they must scan in the app to authorise transfers. They can store this code on a separate device or print it, ensuring that unauthorised transactions cannot proceed without the QR code, even if someone steals their phone.This dual-device requirement adds a robust layer of security, making it significantly harder for fraudsters to execute unauthorised transactions.
Adding Social Validation
Trusted Contacts introduces a social validation step into the transaction process. Customers can invite a trusted friend or family member to verify transactions that exceed a specific limit. This additional layer of scrutiny helps prevent fraudulent transactions by involving someone the customer trusts.
Mark Tierney, CEO of Stop Scams UK, praised this innovation, stating that Monzo’s new safety controls are a hugely welcome innovation that will help keep people safe against fraud. The emotional impact of fraud, alongside financial loss, underscores the importance of Monzo’s proactive approach. By leveraging technology and expertise, these controls aim to stop fraudsters in their tracks before they can inflict harm and ruin people’s lives.
Monzo’s Customer Commitment
Priyesh Patel, Senior Staff Engineer at Monzo, emphasises the bank’s commitment to outpacing fraud tactics and keeping customers’ money safe. Patel explains that as fraudsters become more sophisticated, Monzo continues to invest in best-in-class technology and security experts. These new controls, including choosing your safety radius with Known Locations and having a trusted contact sense-check your payments, offer customers peace of mind and force a much-needed moment of pause in high-stakes situations.
Neobanks like Monzo have long been perceived as easy targets by fraudsters. However, Monzo’s new security features mark a significant shift in this narrative. The introduction of Known Locations, Trusted Contacts, and Secret QR Codes demonstrates Monzo’s commitment to combating fraud with innovative solutions. These features represent a groundbreaking approach in the banking sector, where such proactive measures are rarely seen.
A New Wave of Innovation
This innovation showcases Monzo’s dedication to protecting its customers from fraud. By integrating geographical safety nets, social validation, and dual-device security, Monzo not only enhances transaction security but also sets a new standard for fraud prevention in the industry. These efforts will undoubtedly lead to a substantial reduction in fraud cases, reinforcing customer trust and confidence.
Monzo’s pioneering approach highlights the bank’s passion for safeguarding its users’ finances. As fraud tactics evolve, Monzo’s continuous investment in cutting-edge technology and security experts positions it as a leader in fraud prevention. This proactive stance is essential in ensuring that neobanks can provide a secure banking experience, ultimately transforming the industry’s approach to fraud prevention and customer protection.
