UK Banks Now Forced To Reimburse Fraud Victims Within Five Days Under New Rules
7 Jun 2023
UK banks will be forced to reimburse victims of fraud within five days, the UK’s Payments Systems Regulator (PSR) confirmed.
Set to come into effect next year, the new law will seek to safeguard victims who have been tricked into sending money to scammers also known as APP fraud.
Scammers may pose as banks, HM Revenue and Customs, the police or even pretend to be selling goods or services that do not exist.
Money lost to APP fraud totalled £485million in 2022, according to UK Finance.
There will also be new rules around Faster Payments, the bank account transfer system across which most APP fraud currently takes place.
Chris Hemsley, managing director at the PSR, said: ”Once implemented, our changes will deliver a major shift from the status quo, giving everyone across the payments ecosystem a reason to act to prevent fraud from happening in the first place,”
“That means everybody who makes payments can do so with much greater confidence, knowing that they will be better protected against fraudsters.”