The FCA has announced proposals to give victims of bank transfer scams more scope to make a complaint, and increase the powers of the Financial Ombudsman Service.
We’ve been campaigning for better protection since launching our super-complaint in September 2016. Under current regulations, you have no right to complain to the bank that received your funds if you think it hasn’t taken sufficient action, but this will soon change.
The proposed changes will also allow victims to escalate complaints to the Financial Ombudsman Service, so this is undoubtedly a step in the right direction.
Victims of this type of money transfer scam have told us that it can be a real struggle to get their complaints heard and to find out what has happened to their missing cash.
This is extremely distressing for people who have often lost life-changing sums to these increasingly sophisticated fraudsters.
We welcome the FCA’s announcement that gives victims new rights to ensure that the recipient banks and building societies are fully engaged in the complaints process and gives them the right to take their case to the Financial Ombudsman if they feel they have been treated unfairly.
In response to our 2016 super-complaint, the PSR set out an action plan to encourage great co-operation between banks, introduce anti-fraud measures and give victims more power to recover their funds. It also announced a contingent reimbursement scheme.
A ‘confirmation of payee’ tool is also due to be rolled out later this year, which will require banks to check the name provided on the transfer against its account records. If it doesn’t match, the customer will be alerted.
These developments and today’s proposals are welcome steps forward as we continue to call for the government, regulators and businesses to do as much as possible to safeguard us all from scams.
We don’t want to see banks getting let off the hook and scammers getting away with fraud. Agree? You can sign our campaign here.