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Scam victims more likely to be reimbursed under new rules
Guest Author:
Danielle LevyConsumers who are scammed into authorising bank payments are more likely to be reimbursed by their bank, according to new rules that have been agreed by the industry.
The APP Scams Steering Group has published a voluntary reimbursement code, which will give consumers greater protection against so-called “push” or authorised payment fraud.
According to the code, which will come into effect on 28 May 2019, victims who have lost money through no fault of their own and in ‘no-blame’ scenarios will be reimbursed.
Consumers will need to show they took necessary steps to make sure the person they paid was not a fraudster.
Banks must prepare
Gareth Shaw, head of money at consumer group Which?, said the code will only be judged a success if the action taken by banks results in fewer scams and if all victims are treated fairly and reimbursed swiftly.
“It is now vital that all banks, building societies and other payment service providers sign up to the voluntary code and ensure that victims are not forced to clear unreasonable hurdles to prove they are not at fault when they have been targeted by fraudsters.
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“The banks must also ensure a long-term funding solution is in place by 1 January 2020, so there can never be a return to the days when people were losing life-changing sums of money through no fault of their own,” he added.