The UK’s biggest banks could soon be forced to reimburse hundreds of thousands of blameless victims who are falling victim to fraud each year.

New government proposals, backed by a consultation led by the Payment Systems Regulator (PSR), would mean victims of sophisticated bank transfer scams would see their losses refunded.

It comes as the watchdog warned there are currently too many barriers in place preventing victims from getting their money back in cases of push payment cons – whereby victims are tricked into sending money to fraudsters. 

Under the new plans, the likes of HSBC, Barclays and the AIB group could also be required to publish how often they pay back money to clients who have fallen prey to ‘authorised push payment’ (APP) scams. 

An APP scam is when someone willingly transfers money from their own banking account to a scammer’s.

Hundreds of millions of pounds are still being lost to tricksters every year as they continue to come up with sophisticated schemes. 

More than £500million was lost to scammers across the entirely of 2020. 

Under the new plans, the likes of HSBC, Barclays and the AIB group could also be required to publish how often they pay back money to clients who have fallen prey to ‘authorised push payment’ (APP) scams

Co-op Bank

Lloyds Bank

Many banks have already signed up to a voluntary reimbursement code, which enables people to get their money back in situations where neither they, nor their bank, is to blame – but campaigners say the code…

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