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UK banks will return losses due to fraud

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As reported by the BBC, on May 28, a group of financial institutions in the UK signed a voluntary agreement to compensate victims of fraud.

About 84,000 bank customers lost their money because of fraudulent schemes that forced victims to transfer money to cybercriminals. Only few of them were able to recover their funds. Now a group of financial institutions is creating a special fund to compensate victims of frauds.

At the moment, 17 banks have joined the initiative, including Barclays, HSBC, Lloyds, RBS, Santander, Starling Bank and others. Banks will refund money to customers classified as “no fault”, when neither the bank nor the customer is not guilty of fraud.

Banks traditionally refused to refund money to victims, because in many schemes the client actually voluntarily initiates a payment. The BBC reported on a small business owner who mistakenly provided confidential information necessary to gain access to a bank account, which led to the loss of about $ 228,000. Banks refused to return the stolen money, but when filing a lawsuit, the court pronounced in favor of the client.

It is noted that customers who have already become victims of fraud will not be able to claim reimbursement. Those who will be categorized as “extremely careless” will also not be able to claim a refund.

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