Monzo unveils three fraud-fighting tools
Monzo is rolling out three 'industry-first' security controls to combat fraud on stolen phones and impersonation scams.
This trio of tools will add a crucial layer of protection when customers make larger bank transfers or withdraw from their savings.
It's hoped this will thwart scammers who pose as bank staff to trick victims into authorising transfers out of their accounts, as well as thieves who 'shoulder surf' (looking over your shoulder to copy your Pin) to break into banking apps on stolen phones.
Which? has previously exposed how weak bank app security can make it too easy for phone thieves to hack into financial accounts.
What are the new anti-fraud tools?
Monzo will be rolling out three new security controls over the coming weeks.
You will need to upgrade to the latest version of the app to benefit (customers should be emailed once they are available):
- Known Locations You choose a known location such as home or work for bank transfers or savings withdrawals over your daily allowance.
- Trusted Contacts A request is sent to a chosen friend or family member, who must also use Monzo, to check if a transaction looks safe.
- Secret QR Codes You must scan your QR code, kept on a different device or printed, which you need alongside your phone to approve a payment or withdrawal.
These checks are on top of the usual biometric or Pin authentication checks Monzo already uses.
If you choose to add this extra security, you will be asked to set up daily allowances for sending bank transfers and withdrawing money from your Savings Pots.
When you attempt to withdraw savings or transfer money outside of this allowance, the transaction will be blocked if you: are outside of your Known Location (Monzo uses tracker technology to identify where your phone is); don't get the OK from your Trusted Contact (who will be asked to confirm it's really you by calling or video-calling you); are unable to scan your Secret QR Code (which doesn’t include any personal information or allow access to the account on its own).
You need to have at least two of the three features set up so you have a backup. If you can’t use any of your chosen controls, you can only proceed with your payment by confirming your identity with a short selfie video.
Monzo's new anti-fraud tools
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3 ways to protect your phone
Which? wants banks to do a better job of warning customers about the dangers of mobile phone fraud and explaining exactly how they can protect their devices.
Here are three simple steps you can take:
- Add a unique Pin to your Sim: by securing your Sim with a Pin, you could stop someone stealing yours to put into another phone. If a thief can’t break into a locked phone, they can pop the Sim in a different phone to receive calls and messages. That wouldn’t give them direct access to your banking apps, but it could allow them to pass security checks to activate these apps on a new phone.
- Disable preview notifications: messages can flash up on your phone screen even when your phone is locked, meaning a thief could view text messages or emails sent by your bank. On an iPhone, you can change notification settings under 'messages'. On Android devices, it's 'notifications on lock screen' in your Settings app.
- Register for phone-finding services: Use Google’s Find My Device or Apple’s Find My iPhone, so your phone can be located, locked or wiped of data remotely if it’s lost or stolen.
What other security features does Monzo offer?
This isn't the first time Monzo has made a splash with a clever new security feature.
Its Call Status tool, launched in September 2023, has been used to report more than 4,000 fraud attempts so far this year.
If someone calls and tells you they work for Monzo, you can open your app, tap your profile in the top left of the home screen and check the ‘Privacy & Security’ settings to check whether the call is genuine.
As with other digital banks, you also get instant notifications of transactions (to help you respond to unauthorised payments quickly) and can freeze your card via the app temporarily (if you've lost it).
How do customers rate Monzo?
Every year, Which? surveys thousands of bank customers to get real feedback about the service they have experienced.
Monzo achieved an excellent customer score of 82% in our latest banking satisfaction survey, placing third overall.
However, it has not been selected as a Which? Recommended Provider because it has not signed up to the voluntary Authorised Push Payment (APP) fraud code which launched on 28 May 2019.
New reimbursement rules from 7 October
The voluntary APP fraud code will be replaced with a mandatory scheme from 7 October 2024.
This should mean banks and other payment providers using Faster Payments (the system for bank transfers) will have to refund victims of APP fraud in all but exceptional cases. The new scheme will apply to more than 1,500 firms, which will split the cost of reimbursement 50:50.
With more firms on the hook to refund fraud victims who inadvertently sent money to scammers, others are expected to follow Monzo's lead and develop new and improved anti-fraud tools to protect customers.
- Find out more: mandatory redress for APP fraud victims
