Banks to charge for large cash transfers to cover cost of fraud

BANKS could charge clients for large bank transfers, under plans to crack down on fraud, it emerged last night.

The charges would allow banks to avoid dipping into their own pockets to reimburse victims of a growing bank transfer fraud epidemic and comes ahead of a new code advising banks when they should refund fraud victims.

Figures released this week by the banking industry show that £145million was stolen in the first six months of 2018 by criminals tricking victims to transfer money from bank accounts. Only £31million has been returned.

James Daley, of campaign group Fairer Finance, said: “If banks can’t build systems that protect from fraud, that is their problem. They shouldn’t make consumers pay. Banks should be made to pay, to incentivise them to build better fraud prevention systems.” Among other options being considered is an insurance against banking fraud.