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| Version 1 | Version 2 |
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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. | 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. | 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. | 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. |
| Such transfers work instantly, and cannot be recalled. | |
| In one example highlighted by Which?, Christopher Mills, from York, was tricked into paying a £10,000 house deposit to a fraudster who posed as his estate agent. | |
| The bank refused to cover the loss. | |
| "Tens of thousands of people have, combined, lost hundreds of millions of pounds to these scams," said Hannah Nixon, the PSR's managing director. | "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." | "We need a concerted and co-ordinated industry-wide approach to better protect consumers, and we need it to start today." |
| 'Growing problem' | |
| 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: | 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." | 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." |
| The PSR has already proposed a series of improvements, such as "confirmation of payee", which would enhance payment security. | |
| However, such changes are not due to take effect for several years. |