Banking and Scams: A UK Revolution
Hey there, folks! Big news from London—banks are stepping up to the plate to help pay back customers who fell bait in Britain’s biggest online payment fraud. The Payment Systems Regulator (PSR) is pushing for a fresh safeguard that’ll make most hefty transfers automatically protected.
What’s the Deal?
Drat! Anyone who’s ever bought a shiny new gadget or sent money to a friend abroad could have found themselves wiped out by a nasty “authorised push payment” (APP) scam. PSR’s proposal says:
- Every bank must reimburse payments over £100 (about S$155) that slip up on APP scams.
- Claims can go up to £1 million per incident—though many banks have lower thresholds.
- You’ll have a maximum of 13 months to file a claim.
- The bank that sent the money and the fraudster’s bank will split the cost.
<liProcessing fees to the customer must stay under £35.
Why It Matters
Back in 2021, UK customers lost a staggering £583 million to these scams—an eye‑watering 39% rise from 2020, according to PSR. And 46% of affected customers already get reimbursed, most thanks to the sending bank. With this new rule, that figure should jump to a rock‑solid over 95%.
Who Gets Involved?
The big names that will be juggling the reimbursement game include:
- HSBC
- Natwest Group
- Lloyds
- Barclays
- Banco Santander
- Virgin Money
What’s Next?
When Parliament hands the PSR a new set of powers—likely early 2023—this rule will kick in. PSR also plans to publish handy data showing how the top 25 banks are handling reimbursements and their fraud rates.
Already, some banks have agreed to check the name of the person receiving a money transfer; PSR wants to roll this out nationwide.
Bottom line: Even while you gotta stay pumped to be cautious, the upcoming measures mean that most of your big-spending will have a safety net tied to your bank’s new playbook. Keep your digital wallets snug, but let the banks do the heavy lifting for you!
