Refunds for victims of fraud who are “threatened” after changes to the vital plan
Victims of fraud may find it more difficult to get their money back from their bank after changes are made to a major fraud recovery system.
Under the rules of a voluntary code of conduct introduced in May 2019, banks must reimburse impeccable customers who have been tricked into transferring money to crooks.
Companies that fail to prevent the customer’s losses are responsible for the refund.
Under the rules of a voluntary code of conduct introduced in May 2019, banks must reimburse impeccable customers who have been tricked into transferring money to crooks
If both the customer’s provider and the fraudster’s provider fail to meet the standard, they will split the cost of reimbursing the customer.
In a “no-blame” scenario, the reimbursement was paid out of a central pot of money when all parties did everything they could.
As of last Friday, the nine vendors who signed up for the code will be responsible for repaying their own defrauded customers.
Experts warn that more innocent victims of fraud may be denied reimbursement.
Richard Emery of 4Keys International fraud consultancy says, “When banks are taking the blame-free case into account, there is a real risk that they will put responsibility on customers.”
Trading organization UK Finance denies the changes will affect reimbursement to customers.