Regulator mulls compensation for bank scams

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“Good progress” has been made on protecting consumers from authorised push payment (APP) scams – where people are tricked into sending money to a fraudster – a regulator has said.

The Payment Systems Regulator (PSR) said progress was being made “across a wide range of initiatives”.

The PSR is now consulting on how to deliver a scheme that would see victims of scams reimbursed.

Its report follows a super complaint by Which? that highlighted the problem.

That prompted an initial review, published in 2016, which found there was insufficient information about the scale of the problem.

The industry is now starting to record and understand the scale of APP scams.

It will also introduce new standards that banks will follow when a victim reports an APP scam which should improve victims’ experience and banks’ response times after a report of a scam.

The PSR is looking into how best to reimburse victims and hopes a system will be in place by September 2018.

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