# UK banks told to reimburse customers tricked by scams
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Banks to Reimburse Customers in Proposed Online Scam Reforms
Meta Description: Protecting consumers from online scams, the Payment Systems Regulator suggests banks must reimburse payments over 100 pounds in APP scams. Stay informed.
URL: https://financedigest.com/uk-banks-told-to-reimburse-customers-tricked-by-scamshtml

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By Huw Jones

LONDON (Reuters) – Banks will have to reimburse customers tricked into sending money in a type of online scam that has become Britain’s largest type of payment fraud, the Payment Systems Regulator proposed on Thursday.

The PSR proposed that banks must reimburse payments over 100 pounds ($107.39) in “authorised push payment” (APP) scams.

The maximum claim would be a million pounds per payment, though many [banks have lower limits](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse  billion lifeline offers limited respite to global banks"). The time limit on claims would be no less than 13 months.

Consumers still [need to take caution when sending payments](https://www.financedigest.com/safe-and-secure-payments-for-customers-what-businesses-need-to-know.html "Safe and secure payments for customers – what businesses need to know"), but these proposed measures will have the added protection that most of their larger payments will be automatically protected,” the PSR said in a statement.

The bank from which the [money](https://www.financedigest.com/marketmind-banks-are-leaking-money.html "Marketmind: Banks are leaking money") was sent and the bank of the fraudster would split the reimbursement bill, the PSR said. [Processing costs and fees charged to customers](https://www.financedigest.com/what-are-the-main-challenges-related-to-banks-processing-customer-calls.html "What are the main challenges related to banks processing customer calls? ") cannot exceed 35 pounds.

[Bank customers](https://www.financedigest.com/insight-into-tomorrows-retail-banking-customers.html "INSIGHT INTO TOMORROW’S RETAIL BANKING CUSTOMERS") lost 583 million pounds in APP scams in 2021, up by 39% on 2020, the PSR said.

It [plans to introduce the new rule](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") after parliament expands the powers of the PSR, expected sometime in the first half of 2023.

Some of the [banks that would be affected by the new rule include HSBC](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle"), Natwest Group, Lloyds, Barclays, Banco Santander and Virgin Money.

PSR also plans to publish data on how the top 25 [banks are reimbursing customers](https://www.financedigest.com/communicating-with-the-customer-is-the-future-of-mobile-banking.html "Communicating with the customer is the future of mobile banking") and their levels of fraud.

Currently 46% of customers get reimbursed for APP scams, largely footed by the sending bank, and the PSR [expects this to rise](https://www.financedigest.com/instant-view-us-may-payrolls-rise-up-than-expected.html "Instant View: US May payrolls rise up than expected") to over 95% under its new rule.

Several banks have already agreed to check [names](https://www.financedigest.com/deutsche-bank-names-eigendorf-new-chief-sustainability-officer.html "Deutsche Bank names Eigendorf new chief sustainability officer") of the person being paid by a money transfer between banks, and the PSR wants to roll this out more widely.

($1 = 0.9312 pounds)

(Reporting by Huw Jones; Editing by Lisa Shumaker)


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