Archive for year: 2016

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Calls to safeguard customers from bank transfer scams

David Mackintosh has joined calls to ensure banks do more to protect their customers from falling victim to scams.

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Unlike with many other payment methods, people deceived into transferring money to a fraudster by bank transfer currently have no legal right to get their money back from their bank.

David Mackintosh, Conservative MP for Northampton South, said: “These incredibly sophisticated scams convince people into authorising a ‘push payment’ bank transfer, and often involve life-changing sums of money.

“Banks do not provide the levels of protection that they could to prevent customers losing money to this type of scam, in stark contrast to the protections they provide for other payment methods.”

Which? research found that one in 10 people had, or knew someone that had, made a bank transfer payment to a fraudster’s account, yet six in 10 people did not realise they had no consumer protection from their bank if they are scammed into making a bank transfer.

Which? has used its legal powers to make a ‘super-complaint’ to the Payment Systems Regulator (PSR), calling on them to ensure banks do more to tackle bank transfer fraud and safeguard their customers from scams.

The consumer rights body has called for the PSR to formally investigate the scale of bank transfer fraud and how much it is costing consumers and take action and propose new measures and greater liability for banks to ensure consumers are better protected when they have been tricked into making a bank transfer.

 

David added: “Currently, the onus is on the individual consumer to spot these complex scams, which can include receiving look-alike bills from their solicitor or builder, or being pressured to transfer money as the only way to proceed.

“However, as scams become ever-more sophisticated, consumers can only protect themselves so far.”