Which? makes scams super-complaint against banks over transfer fraud

Which? has launched a “super complaint” to the Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) calling on them to ensure banks better protect customers who are tricked into transferring money to a fraudster.

Which? is concerned that when consumers are tricked into transferring money to a fraudster via a ‘push’ payment (such as when the consumer instructs their bank to send money) there is not an appropriate level of protection compared to other types of payment.

Specifically, Which? believes an investigation is needed to address the following:

  • The extent to which banks could change their conduct to reduce consumer harm from scams that trick people into authorising push payments to a fraudster.
  • Possible changes to legislation or regulation, to change the incentives on banks and payment system operators, and to ensure that more is done to manage the risks from these types of scams and to protect consumer from harm.

Christopher Woolard, Director of Strategy and Competition at the FCA, said:

“We know that fraudsters can use sophisticated tactics, including phishing and vishing, to dupe even the most financially aware consumers. We will work together with the PSR as they investigate this super-complaint.”

Read more>> Which? makes scams super-complaint – Banks must protect those tricked into a bank transfer