Rocio Concha, Which?
Director of Policy and Advocacy, said:
“Which? led the campaign to ensure victims of bank transfer fraud
are treated fairly and consistently by their bank, so it's good
to see the new mandatory scheme working well.
"These figures also pour cold water on unsubstantiated claims
from sections of industry that a mandatory reimbursement scheme
would lead to consumers behaving recklessly or teaming up with
criminals to con banks out of cash.
"People aren't scammed because they are irresponsible - it
happens because ruthless criminals exploit weak links, from
payment firms that refuse to take security seriously, social
media sites that allow scams to flourish and telecoms firms
failing to block calls and texts from criminals. That's why it's
crucial that the government urgently produces a fraud strategy
that gets tough with firms and sectors that aren't pulling their
weight and properly protects consumers from these terrible
crimes."
ENDS
PA copy for ref:
£66m returned to APP scam victims in first six months of
rules going live
By Vicky Shaw, PA Personal Finance Correspondent
Some £66 million was returned to victims of authorised push
payment (APP) scams in the first six months of a new
reimbursement scheme going live, according to a regulator's
figures.
Rules requiring banks to reimburse people who have been tricked
into transferring money to a fraudster were launched in October
last year.
Under the shake-up, banks must reimburse APP fraud victims,
unless the customer has been grossly negligent.
Figures released by the Payment Systems Regulator (PSR) showed
that in the first six months of the new rules, 87% of money lost
to APP scams in scope of the policy was returned to victims,
equating to £66 million.
Consumers reported around 109,000 claims, with 77,000 in scope
for reimbursement.
Nearly nine in 10 (86%) claims were closed within five business
days.
In the update on its website, the PSR said: “The data shows
positive outcomes for consumers in the first six months of our
policy.
“Reimbursement rates were high, firms responded to claims
promptly, and there was no indication of people being
significantly less cautious.”
Some £27.6 million was reimbursed in the first three months of
the new rules, rising to £38.4 million in the following
three-month period.
A reimbursement limit of £85,000 applies under the rules,
although banks can choose to go further than this and repay
higher amounts.
The new protections apply when a transfer is made to and from a
UK bank account. They cover transactions made from October 7 2024
onwards and do not apply retrospectively.
Previously, many bank customers relied on a voluntary code to get
their money back. Concerns were raised that consumers faced a
refund “lottery”.
Criminals will often pose as trusted institutions such as banks,
companies or Government departments to persuade people to part
with their cash, with scams becoming increasingly sophisticated.
They may also use artificial intelligence (AI) and deepfake
videos to make scams seem even more plausible.
There are various reasons why an APP scam claim is not
reimbursable under the policy, for example if it is a civil
dispute, the PSR said.
Around 3% of claims in the first six months of the new rules were
rejected due to the consumer being deemed not to have taken
enough caution. This equated to around 1,100 rejections in the
first three months of the new rules being launched and 1,700
claims turned down in the following three months.
