October 20, 2021

Banks call for more collaboration outside industry to combat transfer scams — Scam Guards

Banks will be able to refund victims of bank transfer fraud themselves rather than out of an interim shared pot of cash, a trade association has said.

UK Finance said the central pot had originally been set up in the hope that a long-term solution, also involving online platforms, would be set up to contribute to customer reimbursement – but this had not yet happened.

Scams often originate outside the banking industry. Some arise from information gained through firms’ data breaches, which can be used to make frauds appear more convincing, or from fake online adverts for products such as investments.

Banking giant Lloyds said there needs to be as much focus on scam prevention as reimbursement.

Katy Worobec, managing director of economic crime at UK Finance, said: “The interim funding pot was originally set up because we had asked that Government and regulators work with industry to find a long-term solution to funding of ‘no…

Read full article here: scamguards.org