More victims of online bank fraud will get their money back under new rules announced by the Payment Systems Regulator (PSR).
Banks and payment companies in the UK will be expected to reimburse victims of Authorised Push Payment (APP) scams within five business days and there will be additional protections for vulnerable customers.
APP fraud happens someone is tricked into making a payment, often due to criminals posing as a legitimate organisation.
There will be new rules in Faster Payments — the payment system across which the vast majority of APP fraud currently takes place — to help tackle fraud.
All payment firms will be incentivised to take action, with sending and receiving firms sharing the costs of reimbursement 50:50.
Banks will be given guidance on implementing mandatory reimbursement, for example regarding the ability to apply a claim excess and maximum level of reimbursement.
The new requirement will not apply to civil disputes, payments which take place across other payment systems or international payments.
“Once implemented, our changes will deliver a major shift from the status quo, giving everyone across the payments ecosystem a reason to act to prevent fraud from happening in the first place,” said Chris Hemsley, managing director of the PSR. “That means everybody who makes payments can do so with much greater confidence, knowing that they will be better protected against fraudsters.”
