The Press and Journal (Inverness, Highlands, and Islands)

No agree­ment on re­im­burs­ing cash trans­fer fraud vic­tims

- BY VICKY SHAW Crime · Fraud · Personal Finance · White-collar Crime · Business · United Kingdom · HM Revenue and Customs

Bri­tain’s bank­ing in­dus­try can­not agree how a scheme to re­fund blame­less vic­tims of money trans­fers should be funded, says the UK’s pay­ment scheme op­er­a­tor.

Pay.UK said there was “no in­dus­try con­sen­sus” on the fi­nanc­ing of a cen­tral fund to re­im­burse in­no­cent vic­tims of autho­rised push pay­ment (App) fraud.

App scams hap­pen when some­one is tricked into trans­fer­ring money di­rectly into a fraud­ster’s bank ac­count, of­ten be­cause the crim­i­nal is pos­ing as a le­git­i­mate or­gan­i­sa­tion such as a bank, HM Rev­enue and Cus­toms or the po­lice.

Pre­vi­ously, scam vic­tims who had done noth­ing wrong had no au­to­matic right to get their money back from their bank – as they had autho­rised the trans­fer.

But a vol­un­tary in­dus­try code in­tro­duced in May makes it eas­ier for vic­tims who have done noth­ing wrong to get their money back.

How­ever, the long-term fund­ing of the code still needs to be agreed.

Con­sumer group Which? said the next gov­ern­ment should make the code and re­im­burse­ment manda­tory to pre­vent in­no­cent scam vic­tims from los­ing life-chang­ing amounts of money.

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