How Authorised Push Payment Fraud works – and how the banking system seems to help it.

In recent months there’s been a lot in the media about bank fraud. As online banking technology and security becomes better the fraudsters are turning to Social Engineering to steal money from innocent people. They have become very good at impersonating bank employees and persuading (often elderly and vulnerable) people to make an ‘Authorised Push Payment’, or ‘APP’.  Basically this is tricking someone into sending them money.

Obviously some people are pretty gullible and perhaps naive when it comes to spotting a convincing and sophisticated criminal fraud, but increasing, savvy and intelligent people are falling victim because the fraudsters have become very good at their ‘craft’.

My point is this: In order to send money to another person you have to know (or be told) very specific details about the Destination Account of that person, the Sort Code, Account Number and of course the Amount.

Unbelievably the banks do NOT check the Account Name during the transfer process. Even if you mistype a digit during the process it’s YOUR fault and the bank will NOT refund the money. This makes it very easy for fraudsters to steal money. The banks must do much more to tighten up the Authorised Push Payment system to stop it being so vulnerable.

Why can’t the banks, when a fraud like this takes place simply trace and return the money to the victim, especially when the bank accounts used are based in the UK?

Unfortunately, it seems that the banks are not great at keeping the current IT systems running, let alone developing and running new ones to combat APP fraud.

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Fundamentals of Economic Inflation

The Economy is a vast a highly complex subject! This diagram is a request from Sofia (thanks).

Inflation is an important aspect of any Economy. When inflation is in control and in balance the Economy is stable. When Economic Inflation is out of control chaos ensues. Governments around the world are obsessed with measuring and controlling Inflation. With good reason!

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How Pensions work

Throughout my working life I keep hearing the words ‘you must have a Pension‘, and ‘what are you retirement plans‘ (especially at my age!). Anyway, I thought I would create a diagram to show the fundamental principles of pensions.

Although this diagram does not show every nuance of how pensions work, I think it shows the fundamental ideas.

Watch out for those ‘Management Fees‘. 1% doesn’t sound a lot, but cumulated over 20 years the ‘Fat Cats’ get pretty fat on them!

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The Paradise Papers – How the Economy works and seems so unfair!

I created this diagram last year after the ‘Panama Papers’ scandal hit the news. Now we have the ‘Paradise Papers’ as well I thought it was time to publish it.

It’s clear that there’s enough wealth in the world to meet the needs of everyone on the planet, if the 1% mega-rich just pay their fair share – instead of hiding their wealth away from the tax man.

The diagram also shows how obscene ‘Austerity‘ is! Making us pay back debt, to who – and why?

Yesterday in the UK was ‘Children in Need‘ day. Although I fully support this, and donate to it, why in a modern society like the UK do children’s hospices like Haven House (and many others) have to rely on charitable giving to support children and young people with life-limiting illness? When you think about it, it’s utterly disgusting.

Are we so utterlybroke‘ that we can’t even look after dying and sick children properly???

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