UK Lowers Fraud Reimbursement Cap Following Industry Pressure

The Payment Systems Regulator reduces the maximum payout for scam victims from £415,000 to £85,000, sparking debate over consumer protection and industry impact.

New cap aligns with the Financial Services Compensation Scheme limit.
Consumer groups argue the cut exposes victims to significant financial harm.
Banks and payment firms lobbied for the reduction, citing prudential risks.
The change affects the upcoming mandatory reimbursement rules starting October 7.
Regulators claim the new limit still covers over 99% of fraud claims by volume.