Monzo makes major changes to bank accounts to stop customers losing money

Monzo has introduced three new security measures for its bank accounts from today

Monzo is introducing three new security measures to its bank accounts in a bid to stop customers from losing money to fraud.

The online banking group have launched "Known Locations, Trusted Contacts and Secret QR codes" which Monzo says will "encourage" people to stop and think before they move money out of their bank account.

With "Known Locations" customers can choose known locations like home or work that they need to be in when making bank transfers or savings withdrawals over their chosen limit. If they are outside of their chosen locations, the transfer will not be completed.

Trusted Contacts will see Monzo customers invite trusted friends or family members, who also use Monzo, to check whether a transaction over their chosen limit looks safe or is suspicious. Finally, the "Secret QR Code" measure will see users receive a personalised QR code that’s stored on a different device or printed and which they need alongside their phone to approve a payment or savings withdrawal. The QR code will only work when scanned in the Monzo app.

From today, Monzo users will have the option to opt into the new security measures. However, it will be rolled out over the coming weeks and users will need to have two set up on their accounts and add the limits for when they activate. The new controls, which are in addition to Monzo’s biometric or PIN authentication and fraud checks.

The controls aim to help combat fraud that happens as a result of phone theft, shoulder surfing (when someone looks over your shoulder to steal access to personal information like your PIN) and impersonation scams, which impact thousands of people across the UK every day.

These new controls follow the launch of Monzo’s Call Status tool which tackles impersonation scams by letting customers check in-app whether they’re on the phone with Monzo or not. The bank says the Call Status Tool has been used to report over 4,000 fraud attempts so far this year.

Priyesh Patel, Senior Staff Engineer at Monzo, said: "As fraudsters become more and more sophisticated we're continuing to invest to outpace their tactics and keep our customers' money safe. Whether it's choosing your safety radius with Known Locations or having a trusted contact sense-check your payments before you make them, these features offer customers peace of mind and force a much-needed moment of pause in a high-stakes situation."

Mark Tierney, CEO of Stop Scams UK said the new safety controls were "hugely welcome" adding: "By leveraging technology and expertise, these controls aim to stop fraudsters in their tracks before they can inflict harm and ruin people’s lives."