Calls for push payment scam refunds for all

Any victims tricked into sending money to scammers should be reimbursed by their banks, a consumer group said.

The? said victims face a “lottery” when it comes to getting their money back.

At the moment, a voluntary code means that some victims will be compensated but not others.

The British payment regulator wants to make compensation compulsory and the government announced a plan a year ago.

In “push payment” scams, victims are tricked into sending money to scammers pretending to be from their bank, the police, or someone else they trust.

Rocio Concha, director of policy and advocacy at which?, said the changes couldn’t come soon enough.

“Our research shows that people can become victims even if they are aware of the threat of fraud and are doing their best to protect themselves,” she said.

His report also said that victims described the realization that they had been scammed as extremely disturbing.

“The devastating emotional and financial consequences are often compounded when victims realize they are facing a lottery when it comes to getting their money back, and some banks are trying to blame them for their ordeal,” added Ms Add concha.

Ministers have said they intend to give victims of authorized push payment fraud, known as APP fraud, a statutory right to a refund.

In his new report Which? called on the Payment Systems Regulator (PSR) to move forward with its proposals to ensure victims are compensated by their banks or building societies, barring exceptional circumstances.

No matter how old or tech savvy they are, anyone can fall victim to a scam, which one? warned.

It turns out that scams often occur when victims are already stressed, and scammers develop a relationship with them to avoid detection.

One victim said scammers kept her on the phone for 90 minutes while she tried to reach her bank.

The? says scammers often use tactics to create a sense of urgency and “coach” victims past checks from their banks.

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

On a Saturday afternoon, she received a call from someone claiming to be from her bank. The caller informed her that her account was fraudulent and that she needed to transfer her money from her existing account to a secure account.

She was skeptical but they listed previous transactions on her account and kept her on the phone for 90 minutes. During the conversation, she said she tried calling her bank’s scam number using another phone to check if it was legit, but couldn’t get through.

The caller told her to get some money from the ATM to cover her up and then said they made an appointment at their local branch for Monday morning.

“When I arrived on Monday they said there was no one by that name. I just felt embarrassed and ashamed. I was sobbing,” she said.

She had lost 9,000 pounds.

Nine months and a decision by the ombudsman later, she finally got the money back. She never told her father, who died around that time.

She urged banks to have “more empathy” with crime victims.

In its most recent consultation, the regulator said it wants to encourage banks to share more data with each other so scammers can be stopped sooner.

According to official figures, the amount lost through APP scams was £249million in the first six months of the year.

While that figure is below pandemic records, it’s still 30% higher than the same time in 2020 and remains a key focus for the banking and finance industry.

Some payment providers have expressed concerns that new refund rules could lead to customers being more lax.

UK Finance told the BBC that the industry is keen to prevent fraud in the first place.

“Although hundreds of millions of pounds have been refunded to thousands of customers since the APP code was launched, the refund alone will not solve the fraud problem,” said a spokesman.

He added that payment providers have already invested heavily in technology to protect customers.

The PSR’s chief executive, Chris Hemsley, told MPs on Tuesday that it would bring in a set of requirements to ensure “there is some customer caution in the system”.

Under his proposals there would be a time limit for claims of around 13 months, with the minimum threshold for a claim being at most £100.

It is currently working with Pay.UK – the operator of the UK’s money transfer system – and banks to ensure the safeguards can be put in place quickly once the legislation has passed Parliament.

As for the victim the BBC spoke to, her message to others was to stay strong in the face of scammers whom she describes as “professionals”.

“You shouldn’t feel any shame or embarrassment,” she said.