BANKS TO REFUND FRAUD VICTIMS – 18/02/2019

I wrote about victims of bank scams possibly being eligible for refunds on 22/01/2019 following a landmark ruling against Santander, which you can read here;

Victims of bank scams could be eligible for refunds

Customers have fallen victim to increasingly sophisticated frauds and banks have been refusing to pay compensation in cases where neither they nor the customer was to blame.

The recent precedent set against Santander by a ruling made by the Ombudsman has forced the banks to voluntarily act collectively before being forced to following a press campaign by the Daily Mail, with the aim of the compensation scheme being implemented before the end of 2019.

The banks that have agreed to this are Barclays, HSBC, RBS, Lloyds, Santander and Nationwide with others expected to follow suit.

The scammers have been posing as bank staff, solicitors, HMRC staff and Police officers to trick customers in to paying about £1m a day via ‘authorised push payment fraud’ to accounts controlled by the scammers.  This figure could be much higher as many victims are probably too embarrassed and ashamed to come forward.

Banks have refused to reimburse customers up to now on the basis that the transactions were authorised by the customers.

However, the Ombudsman recently ruled in the Santander case that the customer was ‘a victim of a sophisticated scam with social engineering at the very heart of it’ and had not authorised the transactions or acted with gross negligence.

This will be initially funded by the banks although it is expected that it will be funded possibly by a levy on transactions, so as you would expect the customer will end up paying for it in the long run.

The banks need to tighten up their systems and protections and make more of a concerted effort to recover the losses with tougher penalties, rather than just pass it on to the customers indirectly to fund a compensation scheme.

I have personally been a victim of scams and frauds and I have spent a lifetime working in financial services, so it can happen to anyone.

Whilst I don’t explicitly cover scams in my book, I certainly cover problematic and fraudulent scenarios with templates based on real-life test cases that work in my book now on sale via Amazon as an e-book and paperback priced £2.99 / £7.99.

Read a free sample via my website and let me know what you think?

DOWNLOAD to your Kindle or get the free Kindle app from Amazon and read the book on your IPad / tablet / smartphone / laptop.

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If you have enjoyed reading this, feel free to take a look at my other website http://www.awriterinedinburgh.com which showcases my writing and how you can work with me.

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