Almost £400m has been lost to bank transfer fraud in the past two years – but today, 5 major banks have signed up to a new code that ensures refunds for victims.
Thousands of victims of bank transfer scams, who’ve lost almost £400m over the past two years to fraudsters, will receive refunds under new plans announced today.
So far, five major banks have signed up to a new code that seeks to protect customers from scams: Barclays, Lloyds Banking Group, HSBC, Metro Bank, Royal Bank of Scotland.
These banks will begin a new reimbursement scheme for customers who have lost money through bank transfer scams on 28 May this year.
The new code requires banks, building societies and other payment services providers to put more measures in place to protect customers from bank transfer fraud – and, crucially, enables victims of this type of scam to get their losses refunded by their bank if they have done nothing wrong. But the code is only voluntary.
But there’s more work to be done on the banks who haven’t signed the code. We’ll be turning up the pressure on all banks in the coming months to sign up to code and protect their customers.
The new code comes more than two years after Which? launched a ‘super-complaint’ to push banks and regulators to better protect people who were increasingly falling victims to scams that resulted in them transferring money to fraudsters.
Consumers and businesses have lost £381m to this type of fraud since 2017 – and because they authorised the payment to a criminal, have had no way of getting their money back.