Banks Start Refunding Transfer Con Victims

By Gary Cutlack on at

A few new paragraphs of boring text have been added to a voluntary code that covers dealings via the UK's main high street banks today, with the wording containing the positive news that innocent victims of money transfer scams may now see their lost money refunded.

This sort of crime – predominantly phone-based where scammers pretend to be legitimate businesses and fool account holders into transferring their money away – hasn't been covered by automatic refund obligations in the past, as responsibility for handing out personal data and agreeing to transfer money has been shouldered by the individual account holders affected. Trick or not, if you did it, you did it.

From today, though, cases of this "authorised push payment" scam where the account holder acted in good faith and wasn't guilty of any cavalier security practises should be covered by the refunds policy, with the major banks creating a new "no blame" fund between them, to pool money to cover losses made in such cases. [UK Finance via Sky News]