The UK’s Financial Conduct Authority releases a song it hopes can help protect consumers from loan fee fraud during Christmas.
The song can be heard here.
Loan fee fraud is where consumers are asked to pay an upfront fee for a loan or credit they never receive.
The FCA typically receives more reports of this during the festive period than any other time of the year, making up one in 20 reports. Last year, the regulator received 32% more loan fee fraud calls each month across the festive period than the rest of the year.
Its new anti-fraud jingle was created in partnership with behavioural scientists INFLUENCE AT WORK and music production company Soviet Science. The song hopes to convey the FCA’s loan fee fraud guidance in a simpler, more memorable and shareable manner.
Through the power of the music, the FCA hopes consumers will be made more aware of the risks of loan fee fraud and be better placed to identify incidents.
In the past year, the financial regulator registered 1,456 instanced of loan fee fraud, with the average loss of £274.
Mark Steward, executive director of enforcement and market oversight at the FCA, said, “After last year’s Christmas lockdown, which saw friends and family unable to be together, the UK deserves to celebrate this year’s festive period in style. During what is already a period of increased spending for families, it’s a sad fact that scammers will be seeking every opportunity to exploit vulnerable people through loan fee fraud.
“Scammers can target anyone, so my message is simple: if you are contacted by text, call or email with the offer of a loan. Stop. Think. And go to the FCA’s register to check the firm’s details and make sure it is authorised to provide credit, before taking out a loan.
“Our FCA jingle is here to engage consumers on the subject of loan fee fraud in a more accessible and memorable way, which we hope will encourage increased vigilance to better protect them and their festive celebrations.”
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