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Banks told to combat payment scams | Banks told to combat payment scams |
(35 minutes later) | |
Banks must do more to tackle scams where people are tricked into transferring money to a fraudster, the regulator has said. | Banks must do more to tackle scams where people are tricked into transferring money to a fraudster, the regulator has said. |
The Payments Systems Regulator (PSR) was responding to a "super complaint" from consumer group Which?. | The Payments Systems Regulator (PSR) was responding to a "super complaint" from consumer group Which?. |
This complaint highlighted the problem of "push" fraud whereby victims are conned into paying the wrong person. | |
However, the PSR stopped short of recommending that banks should be forced to compensate customers. | However, the PSR stopped short of recommending that banks should be forced to compensate customers. |
Which? had wanted banks to refund consumers in cases where account-holders accidentally transferred money to a fraudster, similar to the protections provided on credit card transactions. | |
At the moment banks pay up in about a third of such cases. But mostly they do not admit liability, leaving consumers out of pocket. | |
'Growing problem' | |
"Tens of thousands of people have, combined, lost hundreds of millions of pounds to these scams," said Hannah Nixon, the PSR's managing director. | |
"We need a concerted and co-ordinated industry-wide approach to better protect consumers, and we need it to start today." | |
The regulator said banks needed to work together to help detect this type of fraud, adding they could do more to identify potentially fraudulent payments. | The regulator said banks needed to work together to help detect this type of fraud, adding they could do more to identify potentially fraudulent payments. |
It is recommending that: | |
Ms Nixon, said it had not taken the regulator long to realise the issue was serious: "In a short space of time we have built a clearer picture of the problems we are facing, and it is evident that this type of scam is a growing problem that needs to be tackled." |