Brits lost £460 million to payment fraud last year
New rules from the Payment Systems Regulator (PSR) that guarantee bank refunds for victims of payment fraud will take effect from October.
In 2023, UK consumers lost around £460 million to ‘authorised push payment’ fraud. This is where criminals trick people into making payments or sharing personal details.
Often fraudsters pose as well-known businesses, like Parcelforce, retailer Boots or even government departments, by email, text or phone. They claim postage needs paying, announce a prize win, or threaten fines.
Sometimes they pose as a relative needing an urgent bail-out. Even though customers have effectively made the mistake, the PSR expects banks and payment firms to refund victims.
The Payments Association requested a delay to the new rules to “avoid permanent damage to the UK’s payment industry”. Consumer champions, Which?, described the sector’s response as a “desperate attempt from a small section of the banking industry to shirk responsibility”.
Quids in! Says:
Payment fraud is a numbers game. Scammers reach thousands of people at the touch of a button. To protect ourselves, we should:
- Be wary of emails, texts and calls we’re not expecting, especially if they request personal or financial details
- Never rush to pay, no matter how urgent the request is
- When making payments to people you know you can trust, pay by card using a secure portal. (If all the security measures make it hard to access, it’s probably doing its job.)
- Check the sender or caller’s identity. In emails, the sender’s name might look legit. Click on it to see the email address – it is often clearly fake, if it’s a scammer – but don’t reply
- If you’re not sure, visit the company’s website and call their advertised number
- You can also google the email or phone number to see if it is linked to known scams
- Wherever possible, add a second security check to your payment systems – like needing a code to be texted to you
- Keep software updated and install antivirus protections against ‘spyware’, which might watch who you shop or bank with
Image: Fizkes / Shutterstock
