The United Kingdom’s Starling Bank has introduced a new feature in its app designed to help protect customers from bank impersonation scams. This feature, known as the “call status indicators,” is visible on the home screen and payment screen.

The call status indicators provide real-time information about whether a customer is receiving a genuine call from Starling. They will indicate if the bank has never called the customer or provide details about when the last call occurred.

Bank Impersonation Scams Persist Financially

When users open the Starling app to initiate a payment, they will see one of several messages. These include: “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.”

“We’re constantly looking for new ways to stop scammers in their tracks,” commented Sarah Lenette, Financial Crime Specialist at Starling Bank.

“Bank impersonations are very sophisticated and anyone can become a victim,” she said. “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.”

Starling Bank launches in-app bank impersonation detector https://t.co/KuVNb7UHYW pic.twitter.com/sCPSMxHNt3

— Tech.eu (@tech_eu) October 31, 2024

Despite a reported 84% of UK adults being aware of bank impersonation scams, these scams continue to have a significant financial impact. They result in losses totaling approximately £78.9 million each year.

Rising Loan Losses Prompt Legal Action

Starling Bank has increased legal actions against borrowers who have defaulted on loans, many of which were supported by UK government pandemic lending programs, as reported by Finance Magnates. This response comes as the digital bank faces rising loan losses and a regulatory inquiry into its financial crime controls.

Since May, Starling has filed winding-up petitions against 24 companies for unpaid debts. Most of these companies have shown little business activity, with some never filing accounts.

Additionally, Starling reported increasing defaults in its £830 million small business loan portfolio, primarily backed by government guarantees. The Financial Conduct Authority is investigating the bank's anti-money laundering systems.

Meanwhile, Starling Bank has concluded its third consecutive profitable year, finishing the fiscal year 2024, which ended on March 31, with a pre-tax profit of £301.1 million and revenue of £682.2 million.

The neobank's pre-tax profit increased by 55 percent compared to the previous year, while revenue rose by 51 percent. Additionally, total deposits at the bank grew by 4 percent, reaching £11 billion.