UK Banks to Reimburse Fraud Victims Under New Rules

New regulations mandate reimbursement for victims of bank transfer fraud, with a cap of £85,000, starting October 7.

• The new rules require banks to reimburse victims of authorised push payment (APP) fraud unless gross negligence is involved.
• A reimbursement limit of £85,000 is set, but banks can choose to exceed this amount on a case-by-case basis.
• The regulations apply to transactions from UK bank accounts and cover scams that have become more sophisticated in recent years.
• Consumer group Which? expressed concern over the reduced reimbursement cap, fearing challenges for victims of high-value fraud.
• Banks and consumer groups emphasize the need for cross-sector collaboration to prevent fraud and protect consumers.

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