MSE News

Fraud victims can now complain to the bank receiving their cash

Callum Mason

News Reporter

31 January 2019

Scam victims tricked into transferring money to fraudsters have stronger rights to complain about the bank that received their money, rather than just their own bank, under new rules coming into force today. Under the changes, when fraudsters con victims into sending them cash – known as an authorised push payment (APP) scam – consumers can complain to the bank that has received the money, if they're concerned about how it is handling the situation. Previously, you were only able to complain to your own bank, which had sent the money.

How will the new rules work?

The rules, introduced by the Financial Conduct Authority, only apply to scams that actually happen from today, so you won't be able to contact a bank retrospectively about a payment it received in the past.

Now, the bank receiving the money HAS to accept a complaint, if it relates to how it is handling the situation, and it could have to compensate you for any issues.

If, after complaining, you're still unhappy with the way the receiving bank has handled your case, you can escalate your complaint to the Financial Ombudsman Service.

How much do UK consumers lose from APP scams?

Data from UK Finance, a trade association that represents banks, shows there were 43,875 cases of APP fraud and total losses of £236 million in 2017.

Historically, banks haven't been obliged to refund customers who fall victim to these types of scams but earlier this year, most major banks signed up to a new voluntary code.

This stipulates that where victims of scams have met "the requisite level of care", such as taking notice of any warnings from the bank, they should be reimbursed. The code is still being developed.