PanamaTimes

Saturday, Sep 07, 2024

Calls for push payment scam refunds for all

Calls for push payment scam refunds for all

All victims who are tricked into sending money to scammers should be refunded by their banks, a consumer group has said.

Which? said victims face a "lottery" when it comes to getting their money back.

At the moment, a voluntary code means some victims are compensated, but others are not.

The UK's payments watchdog wants to make compensation mandatory and the government announced a plan a year ago.

In "push payment" fraud, victims are tricked into transferring money to coercive fraudsters pretending to be from their bank, police, or someone else they trust.

Rocio Concha, director of policy and advocacy at Which?, said the changes could not come soon enough.

"Our research shows that people can fall victim even when they are aware of the danger of scams and doing their best to protect themselves," she said.

Its report also said that victims described the realisation they had been scammed as highly distressing.

"The devastating emotional and financial consequences are often compounded as victims realise they face a lottery when it comes to getting their money back, with some banks trying to blame them for their ordeal," Ms Concha added.

Ministers have said they intend to make it a legal right for victims of authorised push payment fraud, known as APP fraud, to be refunded.

In its new report, Which? called on the Payment Systems Regulator (PSR) to press ahead with its proposals to make sure that victims are reimbursed by their banks or building societies unless there were exceptional circumstances.

No matter their age, or how tech savvy they are, anyone can fall victim to a scam, Which? warned.

It found that scams often occur when victims are already stressed, with fraudsters building a relationship with them to avoid detection.

One victim said scammers kept her on the phone for 90 minutes as she struggled to get hold of her bank.

Which? says scammers will often use tactics to create a sense of urgency and "coach" victims past checks by their banks.


'Embarrassment and shame'


The 55-year-old woman who spoke to BBC News had borrowed some money from her father to help pay the bills.

She received a call one Saturday afternoon from someone claiming to be from her bank. The caller told her there was a case of fraud on her account and she needed to move her money from her existing account to a safe one.

She was sceptical but they listed previous transactions on her account, and kept her on the phone for 90 minutes. During the conversation, she said she tried on another phone to call her bank's fraud line to check it was genuine but could not get through.

The caller told her to get some money out of the cash machine to tide her over, then said they had made an appointment at her local branch for the Monday morning.

"When I arrived on the Monday, they said there was nobody of that name. I just felt embarrassment and shame. I was sobbing," she said.

She had lost £9,000.

Nine months and a ruling from the ombudsman later, she was eventually refunded the money. She never told her dad, who died in that time.

She asked banks to have "more empathy" with victims of crime.

In its latest consultation, the regulator said it wants to incentivise banks to share more data with each other so fraudsters can be stopped earlier on.

According to official figures, the amount lost to APP fraud was £249m in the first six months of the year.

Although that figure is down from pandemic records, it is still 30% more than the same time in 2020 and remains a big focus for the banking and finance industry.


Some payment providers have expressed concerns that new rules on reimbursement might mean customers are more careless.

UK Finance told the BBC that the industry is keen to stop fraud from happening in the first place.

"While hundreds of millions of pounds has been reimbursed to thousands of customers since the introduction of the APP code, reimbursement alone will not solve the problem of fraud," a spokesman said.

He added that payment providers have invested a lot of cash in technology to protect customers already.

The managing director of the PSR, Chris Hemsley, told MPs on Tuesday that it would bring in a number of requirements to make sure "there is some customer caution in the system".

Under its proposals, there would be a time limit on claims of about 13 months, with the minimum threshold for a claim sitting at £100 at most.

It is currently working with Pay.UK - the operator of the UK's money transfer system - and banks to make sure the protections can be brought in quickly once the legislation has gone through Parliament.

As for the victim the BBC spoke to, her message to others was that they should stay strong in the face of fraudsters she describes as "professionals".

"You should not feel shame and embarrassment," she said.

Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
BRAZIL’S SUPREME COURT MINISTER ORDERS EXPLANATION ON X BLOCKING
Porn streamer OnlyFans paid owner $630mn in dividends
Donald Trump will not face sentencing over his 'hush money' conviction before the US presidential election on November 5, after a Manhattan judge granted his request to delay the proceeding
Return of Brazilian Artworks to Bahia
France Pilots Mobile Phone Ban in Schools
WHO-Led Study Finds No Link Between Mobile Phones and Brain Cancer
Kamala Harris is in Detroit and has a new accent again
EU Rejects Maduro’s Election Win Claim in Venezuela
Former Red Brigades Member Arrested in Argentina After 40 Years on Run
Elon Musk Accuses Brazilian Supreme Court Justice of Election Interference
Universe May Have Had a Pre-Big Bang 'Secret Life'
Ecuador's Narco Violence Threatens Scientists and Conservation Efforts
Brazilian Judge Alexandre de Moraes Blocks Elon Musk's X
Nаkеd American woman gropes security
Tsimane Tribe: Secrets to Health and Slow Ageing
OpenAI Blocks Iranian Group's ChatGPT Accounts for Election Interference
WHO Declares Mpox Global Health Emergency Again
Decline in World Records at Paris Olympics: An Analysis
EU Pressures Elon Musk Over Trump Interview
UN Reports Lowest Global Youth Unemployment Rate in 15 Years
Fatal Plane Crash Near Sao Paulo
Snoop Dogg: The Feel-Good Spirit of the Paris Olympics
McDonald's Worker Sets Restaurant On Fire Over Customer Frustration
Kamala Harris Confirmed as Democratic Candidate for US Presidential Election
Controversies at the Paris Olympics
Elon Musk Accepts Fight Challenge from Venezuelan President Nicolas Maduro
First Case of 'Virgin Birth' in Endangered Shark Species in Italy
G20 Fails to Reach Agreement on Global Billionaire Tax
Mexican Drug Lords El Mayo and El Chapo's Son Arrested in Texas
World's Hottest Day Recorded on July 21
Joe Biden Withdraws from 2024 US Presidential Race
A Week of Turmoil: Key Moments in US Politics
Global IT Outage Sparks Major Concerns
Global IT Outage Unveils Digital Vulnerabilities
Secret Service Criticized for Lack of Sniper Protection During Trump Shooting
Colombian Court Annuls Amazon Tribes’ Carbon Credit Deal
Sunita Williams Safe on ISS, to Address Earth on July 10
Biden Affirms Commitment To Presidential Race
Boeing Pleads Guilty Over 737 MAX Crashes
Beryl Storm Hits Texas, Killing 2 and Causing Major Power Outages
2024 Predicted to Be World's Hottest Year
Macron Faces New Political Challenges Despite Election Relief
Florida Man Arrested Over Attempt to Withdraw One Cent
Anger mounts at Biden’s top team after disastrous debate
Bolivian President Luis Arce Denies 'Self-Coup' Allegations
Steve Bannon Begins 4-Month Prison Sentence
Biden Warns of 'Dangerous Precedent' After Supreme Court Immunity Ruling in Trump Case
Elon Musk Accuses Kamala Harris of Misleading Post on Trump's Abortion Stance
Hunter Biden Sues Fox News Over 'Revenge Porn' Allegations
New York Times Editorial Board Urges Biden to Exit Presidential Race
×