18 Dec 2018
The Financial Conduct Authority (FCA) has introduced new rules that will allow victims of scams to complain to the bank where fraudsters divert their money to, or that holds the fraudster’s account.
At present the sending bank, the payment services provider (PSP), and not the receiving PSP, has to handle these complaints.
These obligations have now been extended to the receiving PSP and victims can refer their complaints to the Financial Ombudsman Service if they are unhappy with the outcome.
The new rules will come into force on 31 January 2019.
Victims of Authorised Push Payment (APP) fraud – where someone is tricked into transfering money from their account to fraudsters – have faced challenges in getting their money back.
Following a super complaint by Which?, regulators undertook a probe and found that receiving PSPs could do more to identify fraudulent incoming payments and prevent accounts from being compromised by fraudsters, the FCA said.
APP fraud is a serious issue in the UK, which had 43,875 cases of APP fraud and total losses of £236 million in 2017, according to UK Finance data.
Count reading this article to your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet