PETALING JAYA: On Oct 7, the United Kingdom rolled out major new protections for victims of Authorised Push Payment (APP) scams, a form of fraud that can undermine consumers’ trust in digital payments.
APP fraud occurs when individuals are duped into transferring money directly to a scammer, often resulting in financial losses and distress for victims.Under the new regulations, all payment firms – including high street banks, building societies and smaller fintech companies must follow stringent reimbursement policies.
Notably, banks must now refund customers who fall victim to scams within five working days, with a reimbursement cap of £85,000 (RM481,696).
This move marks a substantial leap in consumer protection, particularly for those making transactions through the United Kingdom’s Faster Payments and the Clearing House Automated Payment System (CHAPS).
However, the new rules include an optional £100 (RM567) excess that firms can apply to a claim.
This means that if you are scammed out of £90 (RM482) through no fault of your own, you could still end up empty-handed, and if you lose £300 (RM1,700), you might only get £200 (RM1,134) back.
However, the excess cannot be applied to “vulnerable” consumers.
