Bank transfer scam victims will find it easier to get money back under new plans
A new compensation scheme could be introduced by September 2018
BANK customers tricked into transferring money to a fraudster could find it easier to get their money back, under new plans announced today.
The Payment Systems Regulator (PSR) has been looking into such scams over concerns victims conned into transferring money by bank transfer to a fraudster have no legal right to get their money back.
Figures published by UK Finance show in the first six months of the year more than 19,000 victims were a target of the scams - known as authorised push payment (APP) scams - involving a total amount of over £100 million.
The problem was highlighted by consumer group, Which?, who launched a "super complaint" over the issue.
Last year, The Sun Online reported how one saver lost her entire life savings of £17,500 after being duped by fraudsters who convinced her they were working for Natwest.
Today's plans aim to make it harder for fraudsters to commit such crimes and make sure banks follow best practice and help victims to recover their money.
A compensation scheme could also be introduced by September 2018 - but the PSR warned there is "no silver bullet" and some people will still lose out.
Whether or not a victim gets their money back would depend on the actions of the bank and if the customer had taken steps to protect their information.
Hannah Nixon, of the PSR, said the new measures will make a "positive difference" to scam victims and help prevent such frauds happening.
But she warned: "There is no silver bullet for APP scams and some people will still, unfortunately, lose out.
"That's why we've continued to look for a solution that could reimburse those who are scammed, and today we begin consulting on an option that we think could work.
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Which? chief exe Peter Vicary-Smith said: "A year on from our super complaint, it's good to see the regulator coming down on the side of consumers.
"If this stops the huge amounts of money lost to bank transfer scams, it'll be a significant win.
"To make this a reality, the regulator must now ensure any reimbursement scheme properly compensates victims.
"Banks must move to quickly put in place better checks and protections to prevent these scams happening in the first place."
City watchdog the Financial Conduct Authority (FCA) has previously said that banks' procedures for dealing with these type of scams was often unclear and inconsistent.
It said it will be closely looking at what impact the proposed plans have for victims trying to get their money back.
How to protect yourself from scams
SCAMMERS are becoming increasingly sophisticated to trick customers into transferring them money. But there are steps you can take to protect yourself.
- Never give out personal or financial information on the phone or by email. Your bank, the police or any other organisation will never ask you for these in full
- Never allow someone remote access to your computer following a cold call
- Don’t rely on caller ID – numbers can be spoofed by fraudsters to make it look like they’re calling from a trusted number
- Your bank, the police or any other company, will never call to ask you to transfer your money out of your account for security reasons
- Be wary of all cold calls claiming to be from banks, police, or other trusted organisations – if you have any concerns, call back on an independently verified number
- If you have fallen victim to a scam, call Action Fraud on 0300 123 2040
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