If you’re the victim of a scam, your bank should now replace any lost money, says Paul Lewis
If you receive a call saying your money is at risk, hang up!
From Monday, people who have money stolen from their bank account by fraud should get it reimbursed by the bank up to a maximum of £85,000 – and within a week.
The new rules will be introduced on 7 October and apply to what are called APP or “Authorised Push Payment” frauds, where thieves deceive people into helping them steal their money. Pretending to be from a trusted place, such as a broadband provider or a bank, the scammer tells the customer their money is at risk and should be transferred to another “safe” account to protect it. That account, of course, is controlled by the thieves – and, once moved, the money is usually lost. Fraudsters stole £376 million this way in 2023, from nearly 225,000 people.
The new law replaces the current code, which not all banks have signed up to and which allows them to refuse reimbursement in many cases. A third of the money stolen this way was not returned to victims in 2023 – that’s more than £120 million. The regulator says the new rules should ensure that money stolen by APP fraud is fully reimbursed in at least 90% of cases in future, though some banks may make victims pay the first £100.
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The new law does not just apply to banks: there are many other finance firms offering current accounts. These are called Electronic Money Institutions (EMIs) and most are very poor at reimbursing stolen money, but will now be equally obliged to replace stolen funds.
If you do receive a call saying your money is at risk, you should just hang up. Do not engage with the caller, as they will be highly skilled in drawing victims into their web of deceit. If you think the call might have been genuine, then look up your bank’s fraud number – usually on the back of your debit card – and call it.
The new rules are not retrospective and apply only to money transfers from 7 October 2024 onward. If you are scammed, tell the bank as soon as you can, and say you expect to be reimbursed promptly. Should they fail to comply, you should complain and then contact the Financial Ombudsman Service.
QUESTIONS? Send any questions to Paul.Lewis@radiotimes.com. Paul cannot answer you personally, but will reflect them in his column