New Refund Protections for Payment Fraud Victims Come Into Effect

New protections requiring banks to reimburse victims of authorised push payment (APP) scams have come into force. APP fraud happens when someone is tricked into making large bank transfers to an account posing as a legitimate payee. Under new regulations from the Payment Systems Regulator (PSR) coming into effect on Oct. 7, the vast majority of consumers can expect to be reimbursed within five business days of making their claim. The protection applies to payments made via Faster Payments or CHAPS —used in high value transactions, such as house purchases —from one UK bank account to another. Managing director of the PSR, David Geale, said that payment firms will have incentives to prevent APP fraud....