U.K. fraud victims have not been getting reimbursed by their banks and a regulator in the country is proposing rules to address the issue. The Payment System Regulator (PSR) recently called for public comment on a proposal to strengthen consumer protections around authorized push payments (APP).
According to UK Finance, consumers in the country lost $288 million to APP scams in the first half of 2020. The PSR has proposed rules that would require banks to disclose their refund rates (less than half the funds currently lost to fraud are being reimbursed, according to research).
The proposal also aims to make it harder for bad actors to commit APP fraud in the first place by mandating a standardized approach for financial institutions to share fraud data among themselves.
“We want to make it harder to commit these devastating crimes and also see the victims properly protected,” said Chris Hemsley, managing director of the PSR. “In this call for views, we set our a suite of measures that could have a significant impact on both reducing fraud and improving protections for everyone.