Starling Bank has launched a tool to tackle the problem of bank impersonation scams, in what it says is an industry first.

Starling, one of the UK’s most high-profile challenger banks which has attracted over $1bn in funding, has launched an in-app tool aimed at helping customers identify and protect themselves against fraudsters impersonating themselves as banks.

It comes as scams in which criminals call, email or message people pretending to be from a bank are on the rise, according to official figures.

Criminals stole £1.17 billion through unauthorised and authorised fraud in 2023, with £79m down to bank impersonation fraud. Rival banks have also invested in combating bank impersonation scams.

The tool works by the call status indicators instantly letting customers know if they’re receiving a genuine call from Starling at that very moment.

The indicators will also indicate if Starling has never called them or will give information on when the bank last called them.

The indicators will be visible on the home screen and within the payment screen – where a customer would be looking if they were being pressured into transferring funds, Starling said.

When someone opens the Starling app to make a payment, they will see one of the following messages: “We’ve never called you”, “We’re calling you now”, “You’re on a call with Starling”, “We aren’t calling you” or “No recent calls ”.

Figures show that 73 per cent of adults fear becoming a victim of bank impersonation scams.

Sarah Lenette, financial crime specialist, Starling, said: 

“We’re constantly looking for new ways to stop scammers in their tracks. Bank impersonations are very sophisticated and anyone can become a victim.

“Call status indicators give our customers confidence to know whether they’re being contacted by a genuine representative of the bank, or a con artist, which is why we’re proud to launch this today.”

Earlier this month, Starling was fined £29m by the UK financial regulator for “shockingly lax” financial screening controls.

The FCA has fined Starling Bank £28,959,426 for financial crime failings. The regulator also said the challenger bank, founded by Anne Boden, had “repeatedly breached a requirement not to open accounts for high-risk customers”.