Fraud Complaints Skyrocket in Channel Islands

Fraud Surge Overwhelming Channel Islands Financial Ombudsman

The Channel Islands Financial Ombudsman has warned that a surge in fraud-related complaints is straining its ability to carry out its core role—resolving financial disputes.

In its annual report released today (24 July), the ombudsman’s office revealed a staggering 195% rise in banking fraud cases in 2024. Many involved increasingly sophisticated scams targeting both banks and their customers.

“The customer is often the weakest link in the payment chain, and fraudsters are exploiting this with growing expertise,” the report said.

Officials also noted that the spike in fraud complaints was “almost entirely attributable to a single Financial Services Provider.”

While Jersey saw a higher volume of banking-related complaints, Guernsey’s increase was largely tied to issues within the insurance sector, again linked to one specific provider.

In total, the ombudsman received 577 complaints in 2024 and resolved 565.

Account closures by banks also emerged as a growing concern, adding to the overall caseload. The ombudsman said the rising volume of fraud and operational issues risked overshadowing its main purpose: helping consumers and financial firms settle disputes fairly.