There is an increasing risk to customers using on-line banking. The problem can be identified from recent correspondence and press articles:
Barclays Bank wrote to customers on 8 December 2020 with changes to their terms and conditions. Under ‘Protecting your money’ they rely on an industry code, the Contingent Reimbursement Model Code’ when dealing with Authorised Push Payment Scams. They conclude by saying there may be situations where we can help you get your money back. Clearly they are not identifying any liability.
The Sunday Times on 20 December 2020 referred to secret talks between banks to water down a code intended to protect innocent victims of fraud. Mention is made of 283,000 fraud reports with losses of £1.3 Bn for the year. Full refunds for loss due to scams is as little as 1 in 100 claims.
Banks need to identify scams, trace the transfer of funds and take steps to minimise the incidents of on-line banking fraud. Measures are needed to enable this to happen. Banks must accept a social responsibility. Banks should be incentivised by funding losses due to fraud from their profits from banking not as an insurance cost to be borne by the customer.
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