Santander has responded to calls from consumer group Which? for banks to disclose the percentage of customers reimbursed for authorized push payment (APP) fraud, stating that focusing solely on reimbursement rates could create a “misleading” narrative.
APP scams have seen a significant increase during the Covid-19 pandemic, with losses approaching half a billion pounds in 2020. Many of the largest banks and building societies in the UK have adopted a voluntary code aimed at ensuring that innocent victims of bank transfer scams are reimbursed for their losses. However, these institutions have been hesitant to reveal the number of customers they have compensated, leading Which? to press for greater transparency.
In its defense, Santander argues that emphasizing reimbursement rates overlooks the important work being done in fraud prevention, which it believes should be the primary focus. The bank suggests that compensation figures should be provided alongside three additional metrics: prevention data, scam originator data, and receipt account data.
“A common reporting methodology across the banking sector for this data will be a complex endeavor that requires time to implement correctly, but we believe it will give consumers a more balanced and insightful perspective,” a Santander statement noted.
Furthermore, Santander is advocating for increased cooperation between financial services, social media companies, technology platforms, and telecommunications providers to prevent fraudsters from exploiting their services. In addition, banks, supported by Which?, are urging the UK government to revisit its decision to exclude online scams from the new ‘Online Harms’ bill, a proposal that would impose greater accountability on tech platforms concerning financial fraud.