Fraud victims ‘must be compensated by banks’

Fraud victims who are tricked into transferring money must be given the chance to claim compensation from banks who provide con men with accounts, the Financial Conduct Authority (FCA) has said.

Under proposals published by the FCA yesterday, banks will be forced to accept complaints from fraud victims if they have allowed criminals to open accounts. The move is a victory for The Daily Telegraph’s Make Banks Act on Fraud campaign, which has called for greater rights for consumers. Bank transfer fraud, where a victim is tricked into sending money to scammers, has hit record levels with £236million stolen last year.