Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

UK banks told to reimburse customers tricked by scams

By Huw Jones

LONDON (Reuters) – Banks will have to reimburse customers tricked into sending money in a type of online scam that has become Britain’s largest type of payment fraud, the Payment Systems Regulator proposed on Thursday.

The PSR proposed that banks must reimburse payments over 100 pounds ($107.39) in “authorised push payment” (APP) scams.

The maximum claim would be a million pounds per payment, though many banks have lower limits. The time limit on claims would be no less than 13 months.

Consumers still need to take caution when sending payments, but these proposed measures will have the added protection that most of their larger payments will be automatically protected,” the PSR said in a statement.

The bank from which the money was sent and the bank of the fraudster would split the reimbursement bill, the PSR said. Processing costs and fees charged to customers cannot exceed 35 pounds.

Bank customers lost 583 million pounds in APP scams in 2021, up by 39% on 2020, the PSR said.

It plans to introduce the new rule after parliament expands the powers of the PSR, expected sometime in the first half of 2023.

Some of the banks that would be affected by the new rule include HSBC, Natwest Group, Lloyds, Barclays, Banco Santander and Virgin Money.

PSR also plans to publish data on how the top 25 banks are reimbursing customers and their levels of fraud.

Currently 46% of customers get reimbursed for APP scams, largely footed by the sending bank, and the PSR expects this to rise to over 95% under its new rule.

Several banks have already agreed to check names of the person being paid by a money transfer between banks, and the PSR wants to roll this out more widely.

($1 = 0.9312 pounds)

 

(Reporting by Huw Jones; Editing by Lisa Shumaker)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts