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UK finance authorities extend deadline for funding APP fraud compensation

Thursday 28 November 2019 10:01 CET | News

Interim funding arrangements for a scheme, which reimburses people who are tricked into transferring money directly to a fraudster, will be extended until the end of March 2020.

The voluntary industry scheme, launched in May 2019, makes it easier for victims of authorised push payment (APP) fraud to get their money back in situations where neither they nor their bank is to blame. Before the scheme was set up, many people were losing large amounts because their bank was not obliged to pay them back as the customer had authorised the payment.

However, until now, there has been no industry consensus on how the scheme should be funded, leading to concerns that people could be left without protection from January 2020.

Consumers collectively lost GBP 208 million to APP scams in the first half of 2019, after being tricked into authorising payments to accounts controlled by criminals or purchasing goods from fake or unofficial sources.

Nevertheless, Jenny Ross, Which? money editor, said for Belfast Telegraph: ‘This agreement is merely a stopgap that highlights the industry’s failure to secure vital long-term reimbursement for innocent victims of devastating transfer fraud. It’s clear that a voluntary, industry-led approach to protecting scam victims is not enough.’
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Keywords: APP fraud, bank transfers, fraud prevention, UK, banking, money transfer
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Countries: United Kingdom
This article is part of category

Securing Transactions