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Bank transfer scammers steal £700,000 a day from UK victims

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Bank transfer scammers steal £700,000 a day from UK victims

More than £700,000 is lost to bank transfer scams every day, which works out at £491 a minute, according to research by the user physique Which?

It claimed the banking trade’s approach to reimbursing victims of this acquire of fraud was “unfair and inconsistent,” with less than half of losses being returned to these affected.

Early Newspaper

Fraud in the UK payments trade has soared in contemporary years, with a sharp upward push in authorised push payment (APP) scams. These typically involve email accounts being hacked as a way to trick individuals and agencies into sending cash to bank accounts operated by criminals posing as loyal clients.

Some individuals have had tens of thousands of pounds stolen.

Figures from the banking physique UK Finance display that a total of £412m has been lost across 189,000 cases of bank transfer fraud between the introduction of a voluntary trade code on compensation in May 2019 and the cease of 2020, said Which?

This equates to £707,000 a day, or £29,000 an hour.

Quite a lot of the sizable high road banks signed as a lot as the trade code, which requires them to reimburse clients who fall sufferer to APP scams. Most attention-grabbing these who, for example, have been grossly negligent or uncared for their bank’s warnings would lose their cash, consumers have been promised.

Nonetheless Which? said the figures showed that most efficient 46% of losses had been reimbursed below the code. As a outcome, £225m has no longer been returned to victims, meaning many have been left to shoulder sizable losses.

The code states that if the customer is no longer at fault, they desires to be reimbursed, however the Financial Ombudsman Carrier and others had repeatedly came across that banks have been incorrectly deciding no longer to near losses, said the user physique. It wants mandatory user safety measures to be launched to give fairer outcomes while you have lost “potentially lifestyles-changing” sums.

Which? no longer too long ago contacted leading banks and building societies to race them to commit to publishing their compensation rates for bank transfer scams, environment them a deadline of 28 May to answer.

Gareth Shaw, the head of cash at Which?, said: “Despite sizable sums being lost on a daily basis, low compensation rates based on inconsistent and unfair choices by firms demonstrate how the voluntary code isn’t offering the safeguards promised to victims of bank transfer scams.”

UK Finance has been approached for a remark.

Source:
Bank transfer scammers steal £700,000 a day from UK victims – The Guardian