Monzo customers can now check if they're on the phone to a scammer

Monzo has launched a new in-app tool that will enable customers to tell if they're speaking to a fraudster.

The digital bank's 'call status' tool will allow Monzo customers to check if a call from the bank is genuine – while they're on the line.

Read on to learn more about how the tool works and for advice on how to avoid bank scams.

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The cost of bank scams

Bank scams can be devastating for victims, both financially and emotionally.

The most notorious type usually involves victims receiving a call purporting to be from their bank claiming there is a security issue with the account.

The caller will then encourage the victim to transfer their money to a 'safe' account, or will ask them to download remote access software onto their device, giving the fraudster access.

We've seen victims lose tens of thousands of pounds to these scams, which are known as authorised push payment (APP) scams. 

New rules being introduced next year will make it mandatory for banks to reimburse innocent victims of bank transfer scams. 

• Find out more: new rules on fraud reimbursement

Monzo's 'call status' tool

If you're a Monzo customer and you receive a call from someone claiming to work for the bank, you'll now be able to check whether it's genuine.

To do so, you'll need to log into your banking app while on the phone, go to 'privacy and settings' and check the 'Monzo status'.

If the status doesn't show you're on the phone with someone from Monzo, hang up immediately and inform the bank via the app.

Monzo says it never calls customers out of the blue, but that the new tool is designed to add an additional layer of security. 

Barclays introduced a similar tool called 'app-ID' back in 2018. 

When someone from Barclays calls a customer, they receive a notification on their phone to log into the Barclays app. The app then displays the name of the staff member they're talking to. 

• Find out more: best banks for online security

159 service

If you receive a call from your bank that you're unsure about in any way, you should hang up and call back using the bank's official customer service number.

You'll be able to find this on the bank's website or on the back of your card.

Another alternative is to call 159. This helpline, which was introduced in 2021, connects you directly to your bank's genuine phone number, so you can be sure you won't inadvertently be calling a scammer.

16 banks are signed up to the 159 service – you can find the full list on the Stop Scams UK website.

What to do if you've been scammed

If you think you've been scammed, call your bank immediately and explain what's happened, giving as much detail as possible.

If you've lost money, you can make a claim to your bank for reimbursement.

Some major banks are signed up to a voluntary code, which states that blameless victims of bank transfer scams should be reimbursed. If your bank is signed up, it will need to investigate your claim in line with the code's rules. The Financial Conduct Authority provides additional guidance for instances where victims are considered vulnerable. 

Your bank may agree to reimburse you all or some of your losses, or refuse to reimburse you at all, if it concludes you acted negligently or ignored warnings. If you're unhappy with the outcome, you can appeal to the Financial Ombudsman. 

Additionally, you should report the scam to Action Fraud, or if you're in Scotland call Police Scotland on 101.