Today Which? launched a super-complaint to the Payment Systems Regulator (PSR). We are demanding that banks protect people from losing money when they have been tricked into making a bank transfer to a fraudster.
Which? can use unique legal powers to request the regulator look at any feature of a market which appears to damage people’s interests. The term for this is ‘making a super-complaint’. Regulators have 90 days to investigate and respond to Which?’s concerns.
This is important in the case of bank transfers because there is an unfair loophole. We are generally well-protected against fraud via direct debit, credit card and debit card. But banks don’t have to refund money lost to scammers via bank transfers.
We think the banks should make sure their systems for protecting people are updated in line with the way bank transfers have developed for faster and larger payments.This is a difficult and complex issue, which is why the PSR needs to take action.
We want the PSR, working with the Financial Conduct Authority, to:
- Formally investigate the scale of bank transfer fraud and how much it is costing people;
- Take action and propose new measures and greater liability for banks to ensure people are better protected when they have been tricked into making a bank transfer.
Alex Neill, Director of Policy and Campaigns at Which? said:
“We all now regularly use bank transfers to pay for things, but what most of us don’t realise is that if you’re conned into paying out money to a fraudster you stand to lose all of your money, unlike when you use your credit or debit card.
“With scams on the rise, consumers can only protect themselves so far and we believe that banks must do more to tackle bank transfer fraud and safeguard their customers from scams.”
If you agree, sign the petition now.