In situations where customers at a business send money to a bank account controlled by fraudsters, Britain’s Payment Systems Regulator (PSR) announced on Wednesday that it has mandated that banks and payment companies refund victims of online bank fraud within five days.
In recent years, an extraordinary influx of fraudulent online bank transactions known as authorized push payment (APP) fraud has devastated thousands of people’s money.
Payment Regulator
The repayment criteria will go into effect the next year, according to the PSR, and will be applied to the Faster Payments system, where the great bulk of APP fraud has thus far taken place.
The regulator added that sending and receiving firms would split the expenses of repayment equally, which would encourage all payment companies to take action.
- UK PSR mandates five-day refunds for online fraud victims.
- Repayment criteria for the Faster Payments system to be implemented next year.
- UK to require banks and building societies to compensate APP scam victims in 2024.
When the new regime takes effect in 2024, the UK, a retail payments company, expressed satisfaction with the PSR’s declaration that it would now use its authority to require all banks and building societies that send and receive payments via the UK’s Faster Payment system to provide compensation to victims of APP scams.
The PSR announced last year that it intended to adopt new regulations to combat APP fraud after the legislature increased the regulator’s authority.
