Banks May Charge To Keep Your Money Safe

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It’s time we remembered what a bank is at it’s most basic.  Banks were started to keep money safe.

In days of old when money was gold coin and it became difficult to transport, banks grew and started issuing notes to guarantee the ability to pay.

Banks are now no longer just a place to keep your money, now they invest your money, lend your money and in some cases lose your money if you have invested.

It would seem however that they are no longer the place to keep your money safe.

Over the last few years there have been various accounts of criminals targeting bank customers and swindling them out of their life savings.  One of the most widely reported scams is that someone calls the victim claiming to be from their bank and convinces them that there has been fraudulent activity on their account.  They then convince the victim to transfer all their money to what is, supposedly a safe account, but which is actually the fraudsters own account.

Surely it is not a difficult thing to do to put in a piece of software that delays the withdrawal of the complete contents of someone’s bank account?

In the days of local bank managers, these types of scams would be nigh on impossible as the banking staff would often know customers personally.  Nowadays with so much being done by computers, there is no safety net.

At a recent Treasury Committee meeting, Stephen Jones the CEO of UK Finance, suggested that a levy could be placed on transactions.  (UK Finance is the trade association for UK based banking, payments and cards businesses.)

This levy would be used to enhance economic crime protections.

Considering the profits of Lloyds Bank over the first three months of 2018 increased by 23% with pre tax profits of £1.6bn, surely they should be investing some of these profits to protect their customers money?

Why is it that the banking sector feels that their customers should be paying extra to protect their money?  Isn’t that the purpose of having your money in a bank?  If you have to pay to keep your money safe when it is in a bank, what is the purpose of the bank?

At this rate it will be safer and cheaper to keep cash in a safe at home or some other secure place.  It certainly doesn’t seem like the banking sector is going to keep it safe unless you pay a levy on every transaction made.

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