Barclays battles to take down scam impersonation website
Barclays has battled to take down a scam impersonation website that could have stolen millions from its customers.
The website, which called itself “Barclays Finance”, featured the Barclays logo and included “Barclays” in its domain name, was identified by CityAM on Monday and claimed to be able to process money transfer payments on behalf of customers.
The site said it offered a “smart way to keep your money safe and secure” and allowed customers to “transfer money within minutes and save money for your future” by providing “all of your desired service in a single platform.”
The site appeared to be linked to a similarly phoney business registered on Companies House in April called Barclays Finance, with Sri Lanka-linked directors. The directors were able to register the entity under the “bank” category on Companies House despite a total lack of evidence that the entity was able to carry out licensed banking activities.
After being contacted by CityAM with reports of the scam, Barclays said it was aware of the site and was “acting to have it removed as quickly as possible”.
By Wednesday afternoon the website had been taken down, though the Companies House entity remains active. It is not clear whether or how many Barclays customers were duped by the scam.
Barclays handed £42m fine
It comes as Barclays was hit with a £42m fine by the Financial Conduct Authority (FCA) for separate instances where the bank failed in its financial crime risk management.
The City watchdog blasted Barclays for failing to check it had gathered “sufficient information to understand the money laundering risk” before it opened a client money account for wealth management firm WealthTek.
The FCA said “one simple check” would have resolved the matter if Barclays had looked at the Financial Services register before opening the account and seen WealthTek was not permitted by the FCA to hold client money.
The regulator said the lack of correct information increased the risk of misappropriation of client money or money laundering, with clients depositing £34m into the account.
Barclays made a voluntary payment of £6.3m to WealthTek’s clients, who have a “shortfall in the the money they have been able to reclaim”.