Bó, the new digital bank from RBS, has reportedly been hit by a wave of fraudsters during the short time it has been live.
Around 30% of the applications received by the platform during its first two weeks ihave been fraudulent, according to The Times.
Fraudsters have been attempting to create accounts for money laundering activities, but Bó has been blocking their access, the report claims.
Bó was created to offer customers the ability to better manage their daily spending, setting budgets and goals, and tracking their savings.
The UK banking industry is seeing more attempted attacks. UK Finance recently reported there was a 14% rise in fraud attempts during the first half of 2019, compared to 2018.
The financial industry was able to prevent £820m worth of fraud during this period, representing £4.5m a day. However, some attacks were successful, and criminals made off with a combined total of £408m in unauthorized card, remote banking and cheque fraud.
Online fraud is a major concern for financial institutions around the world. A recent study from American Express stated that nearly eight-in-ten US merchants have experienced fraud since they began operations. The study also found that 69% of businesses are having to increase the time and expense dedicated to handling payment fraud.
Copyright © 2018 RegTech Analyst
