Bank transfer fraud hits £145m in just six months

Fraud victims have lost more than £145m so far this year to the scam that leaves them with no legal way of getting their money back.

According to a report from UK Finance, just 20% of these losses have been recovered. There were around 34,000 cases of ‘authorised payment fraud’ in the first six months of the year, with losses averaging at around £4,260.

Details of a reimbursement scheme are due to be published this week, but under proposals, victims would be entitled to a refund from their bank in certain circumstances.

Gareth, Shaw, Head of Which? Money Online said:

“It’s now two years since our super-complaint highlighted the lack of protection for victims of bank transfer scams, but these shocking figures show just how widespread the problem still is. Banks’ efforts to date have been woefully insufficient and they have not done enough to protect their customers, who continue to lose life-changing sums of money to ever-more sophisticated crooks. The Payment Systems Regulator has rightly committed to introducing a reimbursement scheme for victims. It’s about time that banks step up and properly compensate customers who have lost money through no fault of their own.”