Barclays Battles Scam Impersonation Website, Investigates FCA Fine

Strategic Insights -

Barclays customers may have been put at risk by a scam website impersonating the bank, with the site claiming to process money transfers and savings on behalf of customers. The website, which was identified by City AM and linked to a Companies House registration, featured the Barclays logo and was dubbed "Barclays Finance". The scam site has been taken down, but the associated Companies House entity remains active, leaving it unclear how many customers may have been duped.

Key Takeaways:

  • The scam website, "Barclays Finance", was identified by City AM and featured the Barclays logo and domain name.
  • The site claimed to process money transfers and savings on behalf of customers, offering a "smart way to keep your money safe and secure".
  • The website was linked to a Companies House registration, "Barclays Finance", with Sri Lanka-linked directors.
  • The directors were able to register the entity under the "bank" category despite a lack of evidence they could carry out licensed banking activities.
  • Barclays acknowledged the site and said it was "acting to have it removed as quickly as possible", but the Companies House entity remains active.
  • Barclays was hit with a £42m fine by the Financial Conduct Authority (FCA) for failing to check for money laundering risk in a separate incident.
  • The FCA said a "simple check" would have resolved the issue if Barclays had checked the Financial Services register before opening the account.
  • The lack of correct information increased the risk of misappropriation of client money or money laundering, with £34m deposited into the account.

Statistics:

  • £42m: the fine imposed on Barclays by the Financial Conduct Authority (FCA) for failing to check for money laundering risk.
  • £34m: the amount of money deposited into the account that lacked correct information, increasing the risk of money laundering.
  • £6.3m: the voluntary payment made by Barclays to WealthTek's clients who had a shortfall in the money they could reclaim.
  • £42m: the fine imposed on Barclays (source: City AM, "Barclays slapped with £42m fine for financial crime failings").
  • 1: the number of simple checks the FCA said Barclays should have made before opening the account (source: FCA, "FCA fines Barclays £42 million for poor handling of financial crime risks").

Sources:

  • [1] City AM, "Barclays slapped with £42m fine for financial crime failings"
  • [2] FCA, "FCA fines Barclays £42 million for poor handling of financial crime risks"
  • [3] City AM, "Barclays battles scam impersonation website that could have stolen millions from customers"