A new code has been launched by 17 UK banks to protect customers who fall victim to a sophisticated form of fraud known as Authorised Push Payment (APP) scams.

APP scams involve tricking people into making payments to fraudsters, who are masquerading as legitimate payees.

Victims of these scams who notify the banks signed up to the new code will now be informed within 15 working days whether they will be reimbursed for their losses. Where a person is not satisfied with their bank’s response, they can refer their complaint to the Financial Ombudsman Service.

Chris Hemsley, Co-Managing Director at the Payment Schemes Regulator (PSR), said: “APP scams can have a devastating impact on the people who fall victim to them. The code is a major step-up in protections and it reflects our strong belief that if somebody has done everything they can reasonably do to protect themselves, they should be reimbursed. I welcome the commitment that these banks have made to their customers.

“There has been a significant amount of work by consumer groups and the industry to develop and deliver this code and we are really pleased that these new protections are now available.”

Link: PSR welcomes new industry code that protects people from APP scams

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Ian Stocks

Ian Stocks

Commercial Manager at Smailes Goldie Group

“This is a step in the right direction however, if a customer is negligent when making payments they will not be refunded. The code applies to private individuals, charities with annual income under £1M and businesses employing less than 10 people and having a turnover under €2M so if you fall outside of that demographic you will not be covered by the revisions.”

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