Banks fail to reach agreement on refunds for victims of bank transfer scams
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Banks have been unable to reach a consensus on how to fund the reimbursement of customers who have lost money to bank transfer scams, meaning future victims could be unprotected.
The UK’s independent payment scheme operator, Pay.UK had been urging banks to commit to paying into the current central fund which provides the money to refund fraud victims.
Yet, Pay.UK has said that there is “no industry consensus” which means there continued to be no long-term solution to funding fraud victims reimbursement.
Established in January this year, the current funding was only designed to last for one year, in hopes that a solution would be reached before 2020.
Which? has reported that it now remains unclear whether those who have fallen victim to bank transfer fraud from next year will receive any money back.
This is a concerning development as over £500 million has been lost to bank transfer scams since 2017.
The scams are commonly known as ‘authorised push payment’ (AAP) fraud where a criminal will trick the victim into sending money into their bank account.
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