Bank Transfer Fraud Compensation new fund May 2019
May 2019 New fraud protection with refunds
Consumers who have been tricked into transferring money directly to fraudsters can now get a refund from certain banks.
In 2018 around 84,000 UK bank customers lost money when money was transferred to fraudsters.
Most customers lost their money but now a new code of conduct has been introduced so more fraud victims will receive their money back.
The refunds will be paid from a central fund. This is in claims when it is not the bank’s or the customer’s fault. The large banks have created this fund to reimburse customers where there is no blame except the fraudster.
Which banks offer the new refunds scheme May 2019
Eight banks which include 17 brands have signed up to offer customers this protection.
- Barclays
- HSBC (including First Direct and M&S Bank)
- Lloyds (also Halifax Bank of Scotland & Intelligent Finance)
- Metro Bank
- Nationwide Building Society
- RBS (NatWest & Ulster Bank)
- Santander (Cahoot & Cater Allen)
- Starling Bank
Fraudsters and organised crime gangs have switched from robbing banks physically to defrauding customers. Stealing money from customers by fraudulent transactions is an easier more profitable crime with a low risk of being caught.
Bank transfer fraud
The name of the receiving account will soon be checked before the transfer is carried out. Fraudsters have been able to scam people by giving victims the account details of the fraudster. The sender of money had not been able to check the name of the receiving account. This will change in 2019.
This changes in 2019. Full details Click here
Fingerprint recognition by Mastercard is now live
MasterCard & Fransabank launch the first biometric card in Lebanon in July 2018. This new card means cardholders authenticate in-store payments in seconds with their
fingerprints. There are talks going on with UK banks to introduce the extra level of fraud protection.
New European Laws to be in effect Sept 2019
The ’Strong Customer Authentication’ (SCA)
EU regulations will require strong multi-factor authentication for certain types of payments as from September 2019. This is predicted by Mastercard to increase biometric transactions to jump from under 2% and up to 25% in 2019.
Biometric European identity cards to be brought in
The European Commission has made new proposals to improve security throughout the EU for countries issuing id cards. This includes making the id cards to include the citizens’ fingerprint identification. The proposals are aimed to be implemented in 2 – 5 years.
Dubai International Airport introduces Smart Tunnels to avoid passports
The “Smart Tunnel” is a biometric face recognition system so when a person walks through the tunnel the system knows the identity of the person and no passport is required. The system is now live in the busiest airport in the world Dubai which handled 83.6 million travellers in 2016. The “Smart Tunnel” and “Smart Gate” have set the new global standard for increased biometric airport security plus saving passengers time. Dubai airport has “Smart Gates” which use fingerprint recognition
Click here for more details Also click here for a second video
Fraud Court ruling good news for victims of property fraud
