Banks accused of “hiding” for refusing to publish fraudulent repayment rates
Many banks have signed up to a voluntary code, which promises to reimburse victims of scams who are not at fault. But critics, including Which ?, have pointed out that the promise is open to interpretation as to whether customers have done enough to protect themselves.
Barclays has pledged to release the data “periodically” and reimbursed 74% of claimants in the first two months of this year. TSB did not adhere to the voluntary code, but instead has its own fraud reimbursement guarantee, and said it reimbursed 99.6% of fraud cases last year.
Other banks have argued that the data will not show which of them has the best fraud prevention measures. They also complained that it would place more responsibility on them than the phone companies, which often host the scams through scam phone calls, text messages and bogus websites.
The banks said it would punish those with good practices and many cases of customers making mistakes and blaming the bank. Currently, data is only available anonymously through the Payment Systems Regulator. It shows that the repayment rates vary from 18pc to 64pc.
Among the largest banks, Lloyds Banking Group said that “winning the fight against fraudsters is a team effort and prevention obligations should be extended to all banks as well as online platforms and telecommunications companies where the majority of scams usually start ”. Who did the NatWest group tell? it would continue to provide anonymous data to the regulator and HSBC said it would “strive to ensure fair and reasonable results for our customers”.