Banks have been urged by Which? to disclose fraud refund rates, according to Money Expert. It reported that the consumer advocacy agency has told banks they should reveal how often they reimburse customers who fall victim to bank transfer scams and has given financial institutions until Friday to disclose their reimbursement rates. This comes after figures from the Lending Standards Board (LSB) revealed that consumers are regularly found at fault for fraud losses and denied compensation.
In bank transfer scams, also called Authorised Push Payment (APP) scams, consumers are conned into sending money to a bank account controlled by criminals. In many cases, they’ve been tricked into believing they’re paying a legitimate vendor, trades-person, even a government body or their bank.
Nearly 150,000 Britons fell victim to this type of fraud last year, with some losing tens of thousands of pounds.