Authorization

Transfer scam victims could be reimbursed

By John-Paul Ford Rojas, business reporter
Bank account holders who are tricked into transferring money to fraudsters could be entitled to reimbursement if they have acted with the "requisite level of care" under proposed new rules.
Latest figures show consumers lost €92.9m to authorised push payment (APP) scams in the first half of 2018 - but unlike victims of other types of fraud such as credit or debit card scams they are currently not entitled to be repaid by payment providers.
A body set up to address the issue has now proposed changing this, though it has yet to resolve who will pay for the compensation in cases where banks have also acted with due care.It follows campaigns by consumer groups for banks to shoulder more of the burden in such cases.A new voluntary code to address the issue has been drafted by a steering group set up by the Payment Systems Regulator (PSR).It aims to make it harder for criminals to commit APP fraud, set out how consumers can be vigilant and give them greater protection and support from banks."Importantly, the code proposes the principle that where a consumer has met their requisite level of care, they should be reimbursed," the group said.However, the report has not been able to resolve who will pay for the compensation in cases where "no bank or other payment service provider involved in the payment journey has breached their own level of care".The steering group said it would work to consider and identify "a sustainable funding mechanism through which to reimburse consumers in such a scenario".It will also try to resolve other aspects of how the process will work, including how to settle disputes between banks and other payment service providers.
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