
Audio By Carbonatix
The UK's banks have disagreed on how to pay for refunds to customers who have been tricked into transferring money to sophisticated fraudsters.
A temporary agreement has been in place since May, making it easier for victims of so-called authorised push payment (APP) fraud to get money back.
Now it has been revealed that there is no industry consensus on long-term funding to refund blameless victims.
Without a new deal, victims could be left without protection from January.
'Disappointment'
In the first six months of this year, people lost £208m to fraudsters posing as bank staff, building contractors, solicitors or even police and persuading them to send money from their accounts.
Only a fifth of that was refunded, generally when it was clear that the customer was innocent and the bank had not taken enough care.
Since May, a new code has been in place, backed by a temporary agreement between eight banks to pay refunds in no-blame situations where neither the victim nor the bank was at fault.
There were plans for this agreement to be superseded in January by a new levy of 3p a time on bank transfers which would go to a reimbursement fund.
But a number of banks have refused to support the levy idea, according to Pay.UK - the body operating the UK's money transfer system - which said there was "no industry consensus".
In part, this was because some providers felt those who did the most to prevent fraud would still pay the same levy as those which did little.
A lack of a new deal could reduce protection from the New Year.
Consumer group said the next government should make the code and reimbursement mandatory to prevent innocent scam victims from losing life-changing amounts of cash.
Pay.UK is now urging the industry and regulators to work together to find a solution. "It is critical that the whole industry plays its part," said chief executive Paul Horlock.
Stephen Jones, chief executive of UK Finance, which represents the UK's banks, said: "Ensuring victims of APP scams receive compensation when their money is stolen by criminals is an absolute priority for the payments industry.
"There is strong agreement across the sector that we must all work together to create a central, long-term, sustainable funding system. We are therefore disappointed a way forward has not yet been agreed.
"The industry will continue to call for new legislation to make the code mandatory and agrees with the Treasury Committee and Which? that issues of liability and reimbursement should best be addressed by new laws, rather than just a voluntary code alone."
Latest Stories
-
Kintampo South MP engages Libyan authorities over plight of Ghanaian migrants
4 minutes -
Divided mandates, shared crises: Institutional intersections in Ghana’s flood management
6 minutes -
Western Regional Minister calls for stiffer sanctions for sanitation offenders
6 minutes -
NPP’s Salam Mustapha slams EOCO over the arrest of Miracles Aboagye
7 minutes -
EOCO explains why Dennis Miracles Aboagye was arrested at the airport
8 minutes -
EOCO says Dennis Miracles Aboagye had left Ghana before stop order was issued
10 minutes -
EOCO assures public of impartial probe into alleged GH¢55m IMCCoD scandal
14 minutes -
EOCO says ex-IMCCoD accountant has started refunding money linked to alleged GH¢55m fraud
16 minutes -
Miracles Aboagye to be granted bail today as EOCO probes alleged financial misappropriation
19 minutes -
Dennis Miracles Aboagye, others under investigation over alleged GH¢55m public funds diversion – EOCO
28 minutes -
We will not accept conduct seeking to demean or undermine integrity of staff of members – GAB
40 minutes -
Education Ministry eyes stronger numeracy interventions as maths lags behind literacy
48 minutes -
At least one million women lose access to aid after funding cuts, UN says
59 minutes -
Character, not concrete, is the greatest infrastructure a nation can build – Bagbin
1 hour -
Jospong Group calls for sustained waste management
1 hour