CIFO fraud complaint surge and almost entirely attributable to a single Financial Services Provider

In 2024, the Channel Islands Financial Ombudsman (CIFO) reported a dramatic 195% increase in fraud-related complaints. This surge was predominantly linked to a single Financial Services Provider (FSP), which accounted for a disproportionate number of cases.

Channel Islands Financial Ombudsman (CIFO) reports and updates for 2025 regarding complaints and fraud.

CI Financial Ombudsman says fraud cases are getting in the way of its core job of dispute resolution.

• In its annual report, published today, 24 July, it highlights that banking fraud cases, where both the customer and the bank are defrauded, rose by 195% in 2024.
• The Ombudsman says the customer is seen as the weak point in the payment process and the techniques used to exploit this are becoming more sophisticated.
• It says the spike in cases was 'almost entirely attributable to a single Financial Services Provider.'
• Banks closing customer's accounts was also an issue.
• Jersey had far more banking cases, while in Guernsey the insurance sector, and a single provider, caused a spike in cases.
• The office received 577 complaints last year and dealt with 565.

Here’s a summary of the Channel Islands Financial Ombudsman (CIFO) reports and updates for 2025 regarding complaints and fraud:

Overview:

1. Key Findings:
1. The majority of fraud complaints involved banking services.
2. The rise was "almost entirely attributable to a single Financial Services Provider."
2. The fraud incidents included phishing, impersonation scams, unauthorized transactions, and failures in fraud prevention systems.
3. Implications:
1. The concentration of complaints suggests systemic vulnerabilities within the implicated FSP.
2. CIFO had to reallocate resources to manage the influx, affecting its ability to address other complaints.
3. The situation underscores the need for improved fraud detection, customer education, and industry-wide collaboration.
4. Recommendations:
1. Conduct a thorough review of fraud prevention protocols.
2. Enhance customer awareness and communication regarding fraud risks.
3. Collaborate with regulators and industry peers to strengthen systemic defences.

🚨 Fraud Complaints – 2024 into 2025

According to Channel 103[2]:

• Fraud complaints surged by 195% in 2024, continuing into 2025.
• The rise was “almost entirely attributable to a single Financial Services Provider.”
• Banking fraud was the most affected area, with both customers and banks being defrauded.
• Jersey saw more banking-related complaints, while Guernsey had a spike in insurance-related issues.
• Total complaints in 2024: 577
• Complaints resolved: 565

📊 Complaint Statistics – Q1 2025

From the CIFO Q1 2025 report[1]:

• Complaints opened: 136
• Complaints closed: 123
• Complaints on hand at end of Q1: 266

Outcomes of Closed Complaints:

• 46% (56) were outside CIFO’s mandate;
• 29% (35) were successfully mediated;
• 16% (20) were determined by an Ombudsman;
• 7% (9) were settled by the financial service provider (FSP); and
• 2% (3) were withdrawn by the complainant.

Reasons for Out-of-Mandate Complaints:

• 37% were premature;
• 26% related to services not provided in/from the Channel Islands;
• 18% involved excluded services; and
• Others were due to eligibility, timing, or jurisdictional issues.

🧠 Insight

Fraud has become a major disruptor for CIFO, diverting resources from its core function of dispute resolution. The sophistication of scams and the vulnerability of customers in digital transactions are key concerns.

References

CIFO PUBLIC COMPLAINT STATISTICS - Q1 2025 https://www.ci-fo.org/wp-content/uploads/Quarterly-Statistics-Q1-2025-Publication.pdf

'Explosive growth' in number of Channel Island fraud complaints https://www.channel103.com/news/guernsey/explosive-growth-in-number-of-channel-island-fraud-complaints/