Fraud remains a very problematic aspect of modern finance. Bank transfer scans are perhaps the most disruptive threat to keep an eye on. Criminals pocket more money from these scams every hour than most people earn per year, making one wonder if better security measures are needed.
Bank Transfer Scams Remain Successful
It is worrisome to see how successful bank transfer scams still are in 2022. More specifically, a recent study by researchers confirms the money lost to this attack is still incredibly high. An estimated 28,000 GBP is lost every hour by fraud victims, which is more than an average UK worker earns every year. Unfortunately, finding solutions to this pressing problem has been challenging, and it seems the UK government will have to offer a solution.
The big problem is the voluntary reimbursement code on bank transfers scams. It is an authorized solution introduced in 2019 and utilized by most major banks. But unfortunately, it is also the primary catalyst for bank transfer scams today. Between July 2019 and June 2021, over 845 million GBP was lost across over 306,000 cases of fraud. Additionally, just 42% of the stolen funds were returned to customers, which isn’t acceptable.
Which? Director of Policy and Advocacy Rocio Concha adds:
“While commitments to make reimbursement mandatory were a huge win for consumers, it’s vital that the government introduces the right legislation that will ensure victims get fair and consistent treatment. The regulator must also ensure it is ready to introduce and enforce mandatory reimbursement rules the moment that this legislation is passed.”
Recovering funds after falling victim to a bank transfer scam is a tedious process. Victims face many struggles to recover funds, as many institutions incorrectly apply the voluntary reimbursement code. Moreover, there is no obligation for reimbursement for payment providers, nor are there liability rules.