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New scam refund rules are now in place – but what you get depends who bank with (Image: GETTY)
Bank transfer scam victims now have a new layer of protection, though the size of the payout may hinge on their provider.
Under new regulations, banks must reimburse customers tricked into transferring money to scammers.
Certain providers are signalling their willingness to exceed these fresh mandates on an individual basis.
Reimbursement is now mandatory up to the value of £85,000 under the rules set by the Payment Systems Regulator (PSR) and firms can also opt to apply an excess of up to £100.
A number of banks are committing to forgo this excess fee, and some are open to examining claims that surpass £85,000.
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Bank customers seeking reimbursement from fraudulent transfers may be charged a £100 excess (Image: Getty)
However, some banks have argued that applying the £100 excess could help to prevent customers from taking unnecessary risks with lower-value payments.
The PSR said this excess must not apply to those deemed vulnerable. Here is a look at how some of the major providers are applying the new measures.
Nationwide Building Society
Nationwide has decided not to apply the £100 excess and will review the reimbursement amounts on a case-by-case basis on any claims for £85,000 and over.
Jim Winters, Nationwide’s director of protect, said: “We’ve decided not to charge our customers the £100 excess if they are victims of fraud or scams. We will also continue to review on a case-by-case basis any claims for £85,000 and over.
“It is vital we support victims of crime in their time of need while identifying ways to crack down and prevent fraud and scams before they take place, stopping organised crime and gangs in their tracks.”
Virgin Money
Virgin Money has declared it won’t be applying the voluntary excess for claims, including those under £100.
TSB Bank
TSB, which has been operating its own fraud refund guarantee since April 2019, has pledged to waive the £100 excess. The bank said it will also continue to review claims that exceed the cap on a case-by-case basis.
Nicola Bannister, TSB’s customer support director, said: “We welcome these new rules that should prove a game changer to consumers.”
Starling Bank
Starling Bank has taken a more collaborative approach, emphasising shared responsibility in the battle against fraud. While it will review each case individually, Starling may impose a £50 excess per claim.
NatWest
Meanwhile, NatWest, which encompasses the Royal Bank of Scotland (RBS) and Ulster Bank, is keeping an eye on security improvements to thwart the plans of swindlers targeting their customers. A spokesperson from NatWest said: “We’re continuing to invest in our people and processes to better protect our customers from the criminals who target them.”
The bank, under new PSR regulations, is considering a fixed £100 excess, determined on an individual basis in alignment with their customer’s circumstances.
Barclays
Barclays is toeing a similar line, leaving the door open to potentially charging a £100 excess for each claim, while assuring that every case will be assessed individually. A representative for Barclays said: “The protection of our customers’ funds and data is our highest priority.”
The bank said its “continued investment in robust security systems” and ongoing efforts to educate customers on scams help to keep scam rates down.
Lloyds Bank
Lloyds Banking Group, which encompasses Lloyds, Halifax, and Bank of Scotland, has indicated that customers might face a £100 excess charge. However, the banking conglomerate acknowledges that certain situations may warrant special consideration.
Santander
Santander UK has stated that it may impose a £100 excess fee for reimbursements, with each case also being evaluated individually.
HSBC
HSBC UK and First Direct have announced they will enforce the £100 excess, expressing their commitment to a reimbursement scheme that supports consumers. An HSBC UK spokesperson commented: “All of us have a role to play in preventing fraud and scams.”
They added, “We want to encourage customer caution, particularly when it comes to lower-value purchases made online. This is why we will be applying the excess to the total amount reimbursed to customers while taking into account the specific circumstances of each customer where appropriate.”
Monzo
Monzo also plans to apply the £100 excess to fraudulent claims, deciding on an individual basis.
Why have the rules changed?
Previously, many bank customers have relied on a voluntary code to get their money back. Concerns were raised that consumers faced a refund “lottery”.
A fraud explosion in recent years has seen criminals posing as trusted institutions such as banks, companies or Government departments to persuade people to part with their cash, with scams becoming increasingly sophisticated.
According to figures from UK Finance, the total number of APP cases jumped by 12 percent annually last year to 232,429. Reported losses to this type of scam totalled £459.7 million.
The new mandatory reimbursement limit was previously expected to be £415,000 under the changes, but the PSR, which is overseeing the rules, confirmed in September that this would be reduced to £85,000.
The regulator said its decision to reduce the maximum limit was “carefully balanced” and more than 99 percent of APP claims by volume will still be covered by the revised cap.