The Lemon Fool

Hello,

Due to the growing problem of scams, I feel my money isn't safe with an ordinary bank anymore.

I keep reading horror stories in the news about people having all their savings stolen. It seems like it's just too easy for someone to access your account and steal all your money.

I don't want this to happen to me or anyone in my family.

Is there a safe place where I can keep a large amount of money where it cannot be stolen? I'm thinking of somewhere where there's a complex process required to withdraw or transfer money.

What kind of institutions do you think are safe?


Regards,

Gerald

Gerald424 wrote:I keep reading horror stories in the news about people having all their savings stolen. It seems like it's just too easy for someone to access your account and steal all your money.

I haven't really heard of that. Most times it's the bad guy duping the victim into handing over the money by spinning a line. If you're not savvy that could happen wherever your money is.

Scott.

Gerald424 wrote:What kind of institutions do you think are safe?
Regards,
Gerald

Any financial organisation backed by FSCS
https://www.fscs.org.uk/what-we-cover/b ... societies/

pje16 wrote:

Gerald424 wrote:What kind of institutions do you think are safe?
Regards,
Gerald

Any financial organisation backed by FSCS

I'm not sure if FSCS covers fraud losses. I will ask them.

Just been reading about a guy in Italy who was afraid of being burgled so put his money uo the chimney. all was well until his wife lit a fire one chilly evening. That might not be too good an idea.

Dod

Gerald424 wrote:Hello,

Is there a safe place where I can keep a large amount of money where it cannot be stolen? I'm thinking of somewhere where there's a complex process required to withdraw or transfer money.

What kind of institutions do you think are safe?


Regards,

Gerald

If it is a really "large amount of money", I have read that the Geneva Freeport is the place to keep it. "The freeport became the preferred storage facility for international elite due to the opacity of Switzerland's storage and customs laws." Used by billionaires. It operates a complex process to withdraw money, works of art etc. But it probably charges a lot to put your money there.

For smaller amounts, British Banks are statistically pretty safe. There are around 49 million bank accounts in the UK. Not much is stolen from banks vs stolen from their customers. So they are safe institutions.

Others may correct me if I am wrong but I believe even during the last banking crisis people didn't lose money from savings and current accounts with major UK based banks.

Sadly, it seems that some people with money are tricked into parting with it. Customers are probably the most unsafe part of normal banking processes. The onus is them to ensure that they don't authorise fraudsters to take money out of their accounts. Looking after passwords, cards etc and not trusting unsolicited advice about moving money are essential precautions. And being very cautious when needing to transfer large amounts of money electronically. For example making sure that the recipient account is the one intended.

Given one is security conscious, in my view a savings account in a major bank is pretty safe compared with alternatives. And if you have a lot, split it between several banks. Of course, they will steal a small proportion of your funds every year as their interest rates won't match inflation.

regards

Howard

Gerald424 wrote:Hello,

Due to the growing problem of scams, I feel my money isn't safe with an ordinary bank anymore.

I keep reading horror stories in the news about people having all their savings stolen. It seems like it's just too easy for someone to access your account and steal all your money.

I don't want this to happen to me or anyone in my family.

Is there a safe place where I can keep a large amount of money where it cannot be stolen? I'm thinking of somewhere where there's a complex process required to withdraw or transfer money.

What kind of institutions do you think are safe?


Regards,

Gerald

(put it into) a bank, or a large building society like the Nationwide would be fine.

The only risk is from you, the investor, being duped. Maybe put it in an account which requires 7 or 30 days notice of withdrawal, or longer, then you can't be conned into suddenly withdrawing it.

You could put it in National Savings. No £85k compensation limit and not being a bank as such, it's not a common target for scammers (yet). And their login process and contacting them by other means beats many of the people on this forum, so it's very secure

Gerald424 wrote:

pje16 wrote:

Gerald424 wrote:What kind of institutions do you think are safe?
Regards,
Gerald

Any financial organisation backed by FSCS

I'm not sure if FSCS covers fraud losses. I will ask them.

No, it won't. At least not the kind of fraud you're referring to (only the kind that causes the bank itself to go belly up).

As others have said, the risk from scams is actually you being duped. If you're talking about a large amount of money then presumably you'll be keeping it in savings accounts, and many savings a/cs only allow withdrawals to a "linked account", which require jumping through hoops to change, so that's another potential level of safety against a "simple dupe".

If you are worried about fraud risk, you should consider some or all of the following:

- Open an account in a physical branch and do not enable internet banking. Cut up any card provided. Ask for a cheque book for withdrawals and lock it up securely. Far from fool-proof but secure from the modern internet / phone fraud schemes.
- Metro Bank still (I believe) offer safe deposit boxes. Perhaps investigate this with a view to storing physical cash there.
- If you are really concerned about your own capacity not to be defrauded, create a power of attorney for a friend or family member whose honesty and common sense you trust, and have them open an account for your money but managed by them with you having no access.

Gerald424 wrote:
Due to the growing problem of scams, I feel my money isn't safe with an ordinary bank any more.

I keep reading horror stories in the news about people having all their savings stolen. It seems like it's just too easy for someone to access your account and steal all your money.

I don't want this to happen to me or anyone in my family.

Your concerns related to financial scams are quite valid, but your looking for the solution in the wrong place...

Rather than walk away from established banking systems that really are quite safe and secure if operated sensibly, I would recommend spending some valuable time educating yourself and your family about the various risks that exist, and managing those risks well, rather than looking to manage your money differently...

Here's some links to get you started -

Five banking scams to watch out for -

https://www.which.co.uk/news/article/5-banking-scams-to-watch-out-for-in-2021-aSZ6o5g7MaGe


Top 5 financial & bank scams in the UK -

https://www.fscs.org.uk/news/fraud/top-5-financial-scams/


Latest scam warnings -

https://www.hsbc.co.uk/help/security-centre/latest-scam-warnings/


The vast majority of the banking scams that you will have read about are highly likely to have been avoidable if the victim had been more aware of the types of common scams listed in the above articles, and I really do think that looking for a wholesale move outside of the established banking system is likely to introduce more access issues and other related long-term problems for you and your family than if you were to simply spend some time educating yourselves better about the risks you're concerned about, and learning how to spot them and avoid them...

Cheers,

Itsallaguess

Online accounts now generally use two factor authentication i.e. link to mobile phone, so need password and passcode to your mobile phone. Which makes more secure than couple of years ago.

What's more concern right now is with rpi inflation at 14% our savings are being "stolen" by inflation because Govt, and bank of England were too slow to act.

Dod101 wrote:Just been reading about a guy in Italy who was afraid of being burgled so put his money uo the chimney. all was well until his wife lit a fire one chilly evening. That might not be too good an idea.

Dod

Proof that a fool and his money are soon parted

Your concern is scams not the bank. There is lots of good advice above. I can't see a better place than a bank really to keep some cash.

It does not matter where you keep it if you fall for scams. The weakness is you not the bank. Even those with the skills to get money out of the banks themselves still struggle to do the last bit, get away with it. Even then it's the banks money not yours.

I do know somewhere else that's safe and secure. Send me your account details, pin number favourite pet, first school and your memorable place and I will arrange to do it all for you OK thats me scamming you but hopefully you get the idea. Some are quite clever, much better than me. I doubt everyone especially if it means paying out for something. It's better to err on the side of caution or be rushed into a payment.

Hi Gerald,

The weak link is invariably YOU. Almost all scams target the account holder, not the account. Most of those scams you read about are people who have been fooled into withdrawing their own money and sending it to scammers. I know of no occasion where banks have lost peoples' money without the customer's intervention. The FSCS guarantee means they cannot lose the first £85k even if they go broke. Or unlimited for National Savings.

If you think you might fall for the scammers, then the options I can think of are:
1) Accounts with long lock-ins. There are plenty of 5 year savings bonds. With no option of early withdrawal.
2) Take all your money and buy an annuity. This gives up your capital, so you can never get it back, and guarantees you an income for life.

Gryff

gryffron wrote:1) Accounts with long lock-ins. There are plenty of 5 year savings bonds. With no option of early withdrawal.

is it really no withdrawal until 5 years? Or just no interest until the 5 year period is up?

didds wrote:

gryffron wrote:1) Accounts with long lock-ins. There are plenty of 5 year savings bonds. With no option of early withdrawal.

is it really no withdrawal until 5 years? Or just no interest until the 5 year period is up?

You need to check the T&Cs, some allow withdrawals but have interest penalties.