Call to stop the banks blaming scam victims

BANKS are too quick to hold customers responsible for losing cash to fraudsters, says a watchdog.

Instead of tightening safeguards to make it harder for scammers, victims are held fully or partially to blame for being conned in up to 77 per cent of cases, says Which?

The magazine’s Gareth Shaw, said: “Victims can lose life-changing sums. This cannot be allowed to continue.”

Customers were held to be totally at fault for 60 per cent of payments, the Which? survey found. In 17 per cent of cases blame was shared between customers and lenders either sending or receiving the cash.

The reimbursement rate is low and varies significantly between banks, added Which? Customers trying to recoup losses often face a grilling from banks, compounding the impact of their ordeal.

One HSBC customer lost almost £2,000 after payments he thought he was sending to HMRC were going to scammers.

HSBC argued it was inconceivable that the customer, described as a professional person, could miss “red flags” before making payments – despite the customer stating the criminals knew information about his tax arrangements in the call.

The Financial Ombudsman Service pointed out that his professional background didn’t make him an expert in the UK tax system. It told the bank to fully refund him.

A voluntary code signed by banks was designed to ensure victims of transfer scams are reimbursed for losses when they are not at fault.

But the investigation by Which? found lenders repeatedly refusing refunds. The consumer rights magazine is now calling for the regulator to require banks to publish data, including their reimbursement rates, to show how well they are doing at preventing the harm caused by transfer fraud.

They should also make changes so firms are obligated to reimburse losses to this crime, said Which?