Category Archives: Banking
The revolving door between government & big business
Yesterday’s headlines review of ONS report: 2008-2019, richest 10% enjoy biggest gains in household wealth
Bank branches are closing all over the country, with huge savings in the upkeep of buildings and staff wages. This is due, it is said, to customers undertaking more transactions online. In many cases this is a result of firm persuasion by the banks urging customers towards the more profitable system.
A reader experienced this firm encouragement towards online banking a few days ago when phoning to transfer funds. The impression was given that this was essential, but when pressed the staff member admitted it was not. Indeed she wavered a great deal more when it was pointed out that her job could well be eliminated with the closing down of telephone operations.
America’s Central State Bank warns that – due to the open nature of the Internet – all web-based services are inherently subject to risks such as online theft of access codes/user ID/username, PIN/Password, virus attacks, hacking, unauthorized access and fraudulent transactions.
The National Audit Office records that the volume of online ‘card not present’ fraud increased by 103% between 2011 and 2016
Online banking security rated by Which? At best, a 16% chance of being defrauded
In 2015 online bank fraud was described in the Guardian as the UK’s fastest growing area of crime – doubling from £60m in 2014 to an expected total beyond £130m this year – and the losses to consumers have in some cases been of the life-changing order of £90,000 each.
50 banks were surveyed by Which? and its August 2017 report revealed that all had experienced fraud – the best were 84% free of fraud, the worst only 56%. So even customers using the ‘best’ banks have a 16% chance of being defrauded.
Defrauded customers should accept the blame and not expect automatic refunds
Ross Anderson (right: professor of security engineering at the University of Cambridge’s computer laboratory) has seen the mass take up of online banking, and more recently the explosion in fraudulent activity. Financial fraud cost £2m a day in 2016, with older people disproportionately hit.
According to Anderson and other security experts, banks are shifting liability away from themselves and on to the customer – aided by a Financial Ombudsman Service that they claim rarely challenges the banks following a fraud. Miles Brignall in the Guardian comments: “The bank is on the hook for credit card losses, but not most bank frauds”.
The Independent reported that RBS’s chief executive Ross McEwan caused a storm when he claimed that it is not banks’ responsibility if customers are defrauded in such circumstances. The bank boss – who as part of his role also runs the NatWest brand, which has 24 million retail customers – said he didn’t think the bank had “a duty of care” to victims. They should accept the blame and not expect automatic refunds, he argued. 5,000 of his customers who were defrauded of £25m during nine months in 2015 – and anyone else who has suffered such losses – should consider taking class action.
Anderson, one of Britain’s foremost experts on cybersecurity, says he has never banked online – and has no plans to do so. He believes that system has become so weighted in favour of the banks that the customers now carry all the risk.
Miles Brignall in the Guardian asks: “If a man who has chronicled the rise of online banking won’t use it, what hope is there for the rest of us?”
It’s that time of year again, or more accurately one of those two times of year. The time when the right-wing media works itself into a frenzy over perceived slights against Christianity.
Steve Beauchampé points out that the Daily Telegraph, in a move made to bolster profits, forces many of its staff to work producing a paper on Easter Sunday (and Christmas Day), just as it expects newsagents to open on Easter Sunday to sell that day’s version of the Telegraph and help to raise those profits and the remuneration paid to its senior staff.
Despite this it feels able to ‘froth at the mouth’, claiming that the National Trust was ‘airbrushing’ Easter’. He highlights the ‘faux anger’ generated by a joint National Trust/Cadbury event called the Great Egg Hunt (omitting the word Easter) – the National Trust website, though it uses the word Easter 13,000 times, and because one of Cadburys best-selling products is called a creme egg – not a creme Easter egg.
Meanwhile Prime Minister Theresa May finds time in her busy schedule of hawking arms and British military expertise to the tyrannical rulers of Oman, Jordan and the daddy of all despots, Saudi Arabia, to call the absence of the word Easter in the NT/Cadbury promotion “absolutely ridiculous”.
This, as she should be saying: “the United Kingdom is in danger of fracturing apart and Sturgeon’s running rings around me, I’ve got a generally weak hand to play in the Brexit negotiations whatever Duncan-Smith tells you and I daren’t lose Gibraltar because it’s a British military base and one of our numerous off-shore tax havens, particularly attractive to casinos …and you’re bothering me with this!!?”
The Daily Telegraph is bothered about the word Easter being missed off the title of a children’s hunt for chocolate eggs:
- one week after the UK served notification of its intention to leave the EU,
- a senior Tory has suggested that we might go to war with Spain,
- our Trade Secretary is in the Philippines meeting the self-confessed killer President Duterte and speaking of the two nations’ shared values’,
- the Chancellor is offering India access to our potentially low tax, low regulation banking sector
- and Theresa May is off selling yet more weapons to middle east dictators (she must be on commission with BAE Systems!).
Beauchampé’s final comment: “Nice to see the pro-government wing of the Third Estate getting their priorities right”.
First published in the BirminghamPress.com: http://thebirminghampress.com/2017/04/chocolate-weapons-and-war/ . Republished in https://politicalcleanup.wordpress.com/political-barbs/chocolate-weapons-and-war/