Victims of bank transfer scams could soon be reimbursed for their losses if their bank was to blame under new plans announced today – but thousands of people will still be left out of pocket.
New plans published today will ramp up protection of bank account customers, and reimburse them for their losses – but only if they’ve acted responsibly and the banks involved shoulder some of the blame for the fraud.
Jenni Allen, Managing Director, Which? Money, said:
“Recognition, at long last, that customers who lose money to this type of scam through no fault of their own should be reimbursed is a significant win for consumers.
“Two years on since our super-complaint highlighted a lack of protection for bank customers, the situation has been getting drastically worse.
“It’s simply unacceptable that in cases where banks claim they could not have done anything more, it will still be the victim who is left to bear the cost – often with devastating consequences. Urgent action is needed to address this injustice.
“The new code will only be judged a success when banks’ actions to protect their customers result in fewer scams, and those targeted by these sophisticated criminals are treated fairly and reimbursed swiftly.”
Bank transfer scams – sometimes called ‘authorised push payment’ or APP scams – happen when people are tricked into sending money to a fraudster from their bank to another. People are losing life-changing sums to these scams. This week it was revealed that 34,000 victims have lost £145m in the first six months of 2018.