Why it pays to know about bank transfer scams

Get to know about bank transfer scams

Bank transfer scams involve someone being tricked into paying into an account which appears to be legitimate but is fraudulent.

Victims tricked into transferring cash from their bank to a fraudster’s account may be reimbursed from next year under new rules.

The Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) backed a range of measures to protect consumers. The measures are set to prevent ‘authorised push payment’ (APP) scams.

These are when unsuspecting customers transfer money from their own bank account to one belonging to a criminal. The lost money is then quickly transferred to numerous other accounts, often abroad, and then withdrawn by the crooks.

Some £101 million was unwittingly handed over to criminals this way between January and June this year, new figures show. However only a quarter of this was recovered by banks. Of the 19,370 cases in this period, 88 per cent saw consumers lose an average of £3,000. The remainder were businesses that lost on average £21,500.

If you’ve been a victim of a transfer scam, contact your bank immediately. The bank can try to recover your money.

You could have grounds to complain if the bank has contributed to the fraud or did not try to recover the funds properly.

If your bank refuses to offer a full refund, or offers only a partial refund, you can complain to the bank. They have up to eight weeks to respond, but if you are not satisfied, you can escalate to the Financial Ombudsman Service.

Last year, Which? made a super-complaint to the financial regulator. It is now planning to introduce a more robust reimbursement scheme next year, to help prevent victims from being left out of pocket.

TNT Business

Photo Credit: Pixabay

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