UK digital bank Monzo has unveiled three new security controls designed to combat fraud, as financial crimes continue to rise across the country, affecting many banking customers.
Monzo’s latest security measures – Known Locations, Trusted Contacts and Secret QR Codes – will roll out in the coming weeks. These tools, which customers can opt into, provide an additional layer of protection when making large transfers or withdrawing savings.
The bank aims to counteract prevalent fraud tactics such as phone theft, shoulder surfing and impersonation scams, which have led to significant financial losses across the UK. Phones are now stolen more often than cash and credit cards with the latest UK Finance figures revealing victims lost £136.2million to impersonation scams last year alone.
These new controls follow the launch of Monzo’s Call Status tool that tackles impersonation scams by letting customers check in-app whether they’re on the phone to Monzo or not. Monzo’s Call Status Tool has been used to report over 4,000 fraud attempts so far this year.
“As fraudsters become more and more sophisticated we’re continuing to invest to outpace their tactics and keep our customers’ money safe,” said Priyesh Patel, senior staff engineer at Monzo. “Whether it’s choosing your safety radius with Known Locations or having a trusted contact sense-check your payments before you make them, these features offer customers peace of mind and force a much-needed moment of pause in a high-stakes situation.”
Stop scams
Monzo is also a member of Stop Scams UK, an industry-led collaboration of responsible businesses from across the banking, telecoms and technology sectors who have come together to help stop scams at the source.
Mark Tierney, CEO of Stop Scams UK, commented: “Monzo’s new safety controls are a hugely welcome innovation that will help keep people safe against fraud. The emotional impact of fraud, alongside financial loss, underscores the importance of Monzo’s proactive approach. By leveraging technology and expertise, these controls aim to stop fraudsters in their tracks before they can inflict harm and ruin people’s lives.”
Trio of security controls
Known Locations enables users to specify trusted locations like home or work, from where they can make large transactions. Transfers attempted outside these locations will be blocked, adding a geographical safety net to financial activities.
Trusted Contacts lets users enlist a friend or family member using Monzo to verify the safety of transactions exceeding a certain limit. This social validation step provides an extra layer of scrutiny, potentially stopping fraudulent transactions before they occur.
Secret QR Code gives customers a unique QR code, stored separately on another device or printed, which must be scanned in the Monzo app to approve significant transfers. This dual-device requirement ensures that even if a phone is stolen, unauthorised transactions cannot proceed without the QR code.
Last month, Revolut introduced Wealth Protection, an extra layer of in-app identity verification, designed to prevent thieves from accessing customer savings within the Revolut app.
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