Banks must refund fraud in five days but losses capped at £85,000

Published On Sep 25, 2024, 9:16 AM

Starting October 7, UK banks are mandated to refund victims of fraud up to £85,000 within five days. This initiative by the Payment Systems Regulator (PSR) aims to standardize customer compensation for authorized push payment fraud, which saw a 12% rise in cases to 232,429 in 2023, resulting in losses of about £459.7 million. The regulator will require banks to reimburse claims and, in turn, they can reclaim half of the compensation from the bank used by the fraudster. This is a significant regulatory change sought to enhance victim protection against scams.

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Stock Forecasts

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Positive

The new regulations could positively impact the reputation of larger banks as they adapt to enhance consumer protection, potentially increasing customer trust and engagement. Conversely, smaller banks may face uncertain financial strain due to higher refund liabilities, which could negatively affect their stability.

CRTOView CRTO chart on TradingView

Positive

As these regulations come into play, companies involved in fraud detection and data protection may see increased demand for their services, which could favorably influence their stock performance.

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