Banks will have to repay bank transfer scam victims under new law

PlansareinmotiontoforceallUKbankstoreimbursevictimsofauthorisedpushpayment(APP)scams,markingalandmarkwinforscamvictims.

Inthefirstsixmonthsoftheyear,individualsandbusinesseslostastaggering£355mtoAPPscams–wheretheyaretrickedintosendingmoneytoanaccountcontrolledbyafraudster–toppingcardfraudforthefirsttime.

ThebiggestbanksarealreadysigneduptothevoluntaryContingentReimbursementModel(CRM)CodeintroducedinMay2019,whichismeanttogivevictimsthechanceoffairerandmoreconsistentredress.

ButmostofthemoneystolenbyAPPscammersisstillnotbeingreimbursedandWhich?hasrepeatedlyraisedconcernsthatthevoluntaryapproachisn’tworking.

Whatischanging?

ThePaymentSystemsRegulator(PSR)announcedtodaythattheTreasurywillmakethenecessarylegislativechangestoprovideformandatoryreimbursementforscamvictims.

Initslatestconsultation,openuntil14January2022,thePSRhasalsosetoutvariousproposalssothatitis‘readytoactasquicklyaspossible’whenthelawischanged:

AnabelHoult,Which?ChiefExecutive,said:‘FiveyearsonfromWhich?’ssuper-complaintonbanktransferscams,thiscommitmentfromtheTreasurytolegislatetomakereimbursementmandatoryisahugewinforconsumers.’

‘Peoplearestilllosinglife-changingsumsofmoneyeveryday,sotheTreasurymustmoveswiftlytowardsintroducingthenecessarylegislation.Theregulatormustalsoensureitisreadytoputinplacemandatoryreimbursementrulesthemomentthatlegislationispassed,sofraudvictimsaretreatedfairlyandconsistentlywhentryingtogettheirmoneyback.’

‘Which?hasbeencallingforbankstocomecleanonhowtheytreatfraudvictims,soit’spositivethatthePSRisplanningtodirectfirmstopublishdatathatshowsfraudcasenumbersandhowoftentheyreimbursecustomers.Thebanksmustcooperatefullywithputtinginplacetheselongoverduerequirements.’

WhydidWhich?callformandatoryreimbursement?

WhenWhich?launchedasuper-complaintin2016,wehighlightedtheglaringgapinfraudprotectionforbanktransfers,comparedtootherformsofpaymentsuchascreditanddebitcardpaymentsordirectdebits.

WhilethevoluntaryCRMCodeintroducedinMay2019wasasignificantstepforward,theevidencewegatheredsinceitslaunchdemonstratesthatregulatoryoversightismuchmorelikelytoleadtofaireroutcomes:

Findoutmore:youcansignupforfreescamalertemailstokeeponestepaheadofthefraudstersandreportanyscamsyoucomeacrossusingtheWhich?scamsharertool.