Banks abandoning scam victims, says Which?

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Many victims of bank transfer scams are being “abandoned” by banks when trying to get their money back, a study by Which? has found.

Measures including a voluntary reimbursement code have repeatedly failed to adequately protect consumers and provide reimbursement for victims, the consumer group said.

Scammers pocketed £479 million in 2020 from authorised pushed payment (APP) fraud alone, whereby victims are tricked into transferring money.

Which?, however, said reimbursement rates remain extremely low, with banks finding victims at least partly responsible for their losses in 77% of cases assessed in the first 14 months of the code.

The reimbursement code states that victims should be reimbursed unless the firm can establish the customer did not have a reasonable basis for believing the person or organisation they were sending money to was genuine.

Despite this, figures from the Financial Ombudsman Service indicate that banks are…

Read full article at www.walesonline.co.uk