Victims of bank transfer scams are losing more money every hour than the average UK worker earns in a year, according to research from Which?. The consumer advocacy group is urging the government to take immediate action on its promise to legislate for mandatory reimbursement of these victims.
A voluntary reimbursement code for bank transfer scams, also known as authorised push payment fraud (APP), was established in May 2019, with most major banks participating. However, an analysis of UK Finance data conducted by Which? reveals that between July 2019 and June 2021, approximately £854 million was lost across 306,573 cases of APP fraud, and only 42% of these losses were returned to customers.
Consequently, £495 million remains unreimbursed, resulting in customers facing net losses at an alarming rate of £4.7 million per week, £676,881 per day, or £28,203 per hour. Which? highlights that the current reimbursement process is inconsistent and often misapplied by various financial institutions, leaving many victims struggling to recover their funds.
The organization advocates for payment providers to be legally obligated to reimburse victims, with clearly defined liability rules established by legislation. Rocio Concha, Which? Director of Policy and Advocacy, states, “While commitments to make reimbursement mandatory were a huge win for consumers, it’s vital that the government introduces the right legislation to ensure victims receive fair and consistent treatment. The regulator must also be prepared to implement and enforce mandatory reimbursement rules as soon as the legislation is enacted.”