Money

Huge change to bank rules in days confirmed as payouts slashed for fraud victims

Published

4 hours ago

September 25, 2024

Huge change to bank rules in days confirmed as payouts slashed for fraud victims

SCAM victims tricked into sending money to fraudsters from their accounts will see compensation sliced under plans confirmed today.

Customers who unwittingly transfer cash to con artists had been due to receive reimbursement of up to £415,000 under new rules coming in days.

Fraud victims will see compensation lowered to £85,000Credit: Alamy

But now payouts have been given a ceiling of £85,000 when rules take effect on October 7, the Payment Systems Regulator (PSR) confirmed today.

The change comes after a “lobbying campaign” from some firms in the payments industry,” according to Rocio Concha, director of policy and advocacy at consumer group Which?.

She added: “People don’t fall victim to scams because they’re careless, but because they’re ruthlessly manipulated.

“As the disastrous consequences of this decision for scam victims become apparent, the regulator must carefully monitor its impact and be ready to intervene with better protections for victims along with stronger financial incentives for banks and payments firms to tackle fraud.”

Fraud is broadly split into authorised and unauthorised.

People who are tricked willingly giving cash or providing consent to fake payments are classed as authorised fraud.

Victims were tricked into giving away £459.7m through authorised push payment (APP) fraud, according to financial figures from industry body UK Finance.

Purchase scams are the biggest driver of authorised fraud with people buying in advance for bogus goods or fake services that never materialise, usually through social sites such as Facebook.

Unauthorised fraud, on the other hand, is where criminals typically steal financial information to take out products in victims’ names.

Victims of APP fraud currently receive 62% of cash back after being scammed compared to 98% of unauthorised targets.

A woman has told how she lost £19,700 after falling for an elaborate scam while hunting for a studio flat

The new rules were part of efforts to tackle this issue to make sure victims are fairly reimbursed.

Up until now, banks have just signed up to a voluntary reimbursement code.

In a statement the PSR said new requirements will provide “world-leading protections” to people who fall victim to scams.

The body added: “This was a carefully balanced decision – which provides significant protection to fraud victims and strikes an appropriate balance having regard to the PSR’s innovation and competition objectives and making sure that payment systems work well for everyone.”

More than 99% of APP claims will be covered by the £85,000 reimbursement cap, according to the PSR.

A final policy statement to explain the reasoning for the decision is due to be published next week.

The Financial Ombudsman Service (FOS) revealed that scam-related complaints have recently reached their highest level since at least early 2018.

In the first quarter of this financial year (April 1 to June 30), consumers lodged 8,734 gripes about fraud and scams.

More than half were in related to authorised push payment scams.

HOW TO PROTECT AGAINST SCAMMERS

More than three quarters of authorised fraud starts online.

When handing over cash for goods or services found online that you haven’t yet received you should be extra vigilant for scams.

Fraudsters often use popular events such as the recently announced Oasis concerts, to prey on victims.

Buy from reputable sources and sites to protect yourself.

Alarm bells should be ringing if prices are too good to be true.

Take the time to carry out extra checks on unknown sources.

Fraud cases that originate through phone calls make up fewer cases but losses are often far larger. These are typically when criminals impersonate banks or other trusted sources.

It’s ok to reject, refuse or ignore requests for cash. Usually it is criminals that will try to pressure or rush you into payments.

If you are in doubt over a caller’s identity, call a trusted company or organisation phone number to check.

How to protect yourself from scams

BY keeping these tips in mind, you can avoid getting caught up in a scam:

Firstly, remember that if something seems too good to be true, it normally is.
Check brands are “verified” on Facebook and Twitter pages – this means the company will have a blue tick on its profile.
Look for grammatical and spelling errors; fraudsters are notoriously bad at writing proper English. If you receive a message from a “friend” informing you of a freebie, consider whether it’s written in your friend’s normal style.
If you’re invited to click on a URL, hover over the link to see the address it will take you to – does it look genuine?
To be on the really safe side, don’t click on unsolicited links in messages, even if they appear to come from a trusted contact.
Be careful when opening email attachments too. Fraudsters are increasingly attaching files, usually PDFs or spreadsheets, which contain dangerous malware.
If you receive a suspicious message then report it to the company, block the sender and delete it.
If you think you’ve fallen for a scam, report it to Action Fraud on 0300 123 2040 or use its online fraud reporting tool.

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Money

B&Q shoppers rush to buy 80p hot tub must have perfect for keeping away Autumn chill in 95% off clearance

Published

8 mins ago

September 25, 2024

NewsAdmin

B&Q shoppers have been hot-footing it down to their local store to bag a hot tub accessory which is ideal for the chiller autumn temperatures.

The homewares store is currently selling a “CleverSpa Grey Square Canopy” for just 80p each in a clearance sale, with the original retail price being £15.

B&Q originally sold the CleverSpa canopy for £15 but is now heavily reducedCredit: B&Q

That’s a huge reduction of 95 per cent.

The polyester canopy which fits over the top of a CleverSpa hot tub, shielding you from the elements, measures 75.5cm by 187cm.

However, the bargain seems to have been hugely popular already as currently B&Qs website says “this product is currently out of stock”.

According to the product description: “It will keep you cool on sunny days with 50+ UPF protection, keep you sheltered from the elements and provide you with a little privacy too!”

The canopy also has a mesh panel which “ensures that the wind doesn’t lift the canopy once in place”.

It also says the product can be easily cleaned with a wet soft cloth.

For comparison, B&Q is selling a “Lay-Z-Spa black and grey dome spa canopy” for £150.

We recommend you search on the B&Q website to see if the product is in a store near you, before making the decision to buy online.

To find your nearest outlet use the Store Locator tool on their website.

Shopping discounts – How to make savings and find the best bargains

It’s often useful to shop for outdoor items such as these at the end of the summer season, as they are much less in demand so are sold at much lower prices.

When searching for the perfect item, be sure to also shop around using the search tool and filter functions on a range of sites.

The price toggle when surfing websites is perfect for setting your own budget and shopping within a particular range.

The “sort by” tool can also be your best friend, allowing you to view the lowest priced items first, and spot all the best deals.

Comparing prices between websites also helps you make sure you’re getting the right deal for the right product.

How to bag a bargain

SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain…

Big names regularly offer discounts or special lower prices for members, among other perks.

Sales are when you can pick up a real steal.

Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.

Sign up to mailing lists and you’ll also be first to know of special offers. It can be worth following retailers on social media too.

When buying online, always do a search for money off codes or vouchers that you can use vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.

Scanner apps are useful to have on your phone. Trolley.co.uk app has a scanner that you can use to compare prices on branded items when out shopping.

Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.

And always check if you can get cashback before paying which in effect means you’ll get some of your money back or a discount on the item.