AGL 38.16 Decreased By ▼ -0.06 (-0.16%)
AIRLINK 134.19 Increased By ▲ 5.22 (4.05%)
BOP 8.85 Increased By ▲ 1.00 (12.74%)
CNERGY 4.69 Increased By ▲ 0.03 (0.64%)
DCL 8.67 Increased By ▲ 0.35 (4.21%)
DFML 39.78 Increased By ▲ 0.84 (2.16%)
DGKC 85.15 Increased By ▲ 3.21 (3.92%)
FCCL 34.90 Increased By ▲ 1.48 (4.43%)
FFBL 75.60 Decreased By ▼ -0.11 (-0.15%)
FFL 12.74 Decreased By ▼ -0.08 (-0.62%)
HUBC 109.45 Decreased By ▼ -0.91 (-0.82%)
HUMNL 14.10 Increased By ▲ 0.09 (0.64%)
KEL 5.40 Increased By ▲ 0.25 (4.85%)
KOSM 7.75 Increased By ▲ 0.08 (1.04%)
MLCF 41.37 Increased By ▲ 1.57 (3.94%)
NBP 69.70 Decreased By ▼ -2.62 (-3.62%)
OGDC 193.62 Increased By ▲ 5.33 (2.83%)
PAEL 26.21 Increased By ▲ 0.58 (2.26%)
PIBTL 7.42 Increased By ▲ 0.05 (0.68%)
PPL 163.85 Increased By ▲ 11.18 (7.32%)
PRL 26.36 Increased By ▲ 0.97 (3.82%)
PTC 19.47 Increased By ▲ 1.77 (10%)
SEARL 84.40 Increased By ▲ 1.98 (2.4%)
TELE 7.99 Increased By ▲ 0.40 (5.27%)
TOMCL 34.05 Increased By ▲ 1.48 (4.54%)
TPLP 8.72 Increased By ▲ 0.30 (3.56%)
TREET 17.18 Increased By ▲ 0.40 (2.38%)
TRG 61.00 Increased By ▲ 4.96 (8.85%)
UNITY 28.96 Increased By ▲ 0.18 (0.63%)
WTL 1.37 Increased By ▲ 0.02 (1.48%)
BR100 10,786 Increased By 127.6 (1.2%)
BR30 32,266 Increased By 934.6 (2.98%)
KSE100 100,083 Increased By 813.5 (0.82%)
KSE30 31,193 Increased By 160.9 (0.52%)

Banks are under no obligation to reimburse the tens of thousands of people who have lost money totalling hundreds of millions of pounds (dollars) by making transfers from their bank accounts to fraudsters, a British regulator ruled on Friday. The Payment Systems Regulator, part of the Financial Conduct Authority (FCA), was responding to a complaint from consumer rights campaign group Which? about authorised "push" payments or APP.
APP scams involve bank customers being tricked by phone or email into transferring money to a person or organisation they believe to be legitimate. Which? has argued that banks should reimburse such transfers in the same way as they already do for scams involving direct debit, credit and debit card payments and fraudulent account activity.
However, the PSR said there was insufficient evidence to force banks to reimburse APP payments, although it will consider whether it should propose changes as more evidence emerges. "In a short space of time we have built a clearer picture of the problems we are facing, and it is evident that this type of scam is a growing problem that needs to be tackled," Hannah Nixon, managing director of the PSR, said.
"Tens of thousands of people have, combined, lost hundreds of millions of pounds to these scams, but the data we have seen so far is incomplete. We need a concerted and co-ordinated industry-wide approach to better protect consumers, and we need it to start today." Which? said the regulator had let banks off the hook by failing to address the issue of liability.
"The outcome for people is, unfortunately, that they will continue to be scammed out of millions of pounds. We need to see swift action and not see this kicked into the long grass in the second half of 2017," said Alex Neill, managing director of Which? The PSR announced a package of measures to reduce fraudsters' ability to carry out scams and, when the do occur, to increase the chances of recovering the money. It has asked the industry to develop a way of legally sharing information to help victims recover their money.

Copyright Reuters, 2016

Comments

Comments are closed.