Proposals to reimburse scam victims are half-baked, says Treasury Committee

Treasury Committee chair Harriett Baldwin said regulators need to sort out exclusions and criteria quickly.

Proposals to reimburse victims of bank transfer scams are half-baked in their current form and need further action, according to the Treasury Committee (picture posed by model/Dominic Lipinski/PA) (PA Archive)

Proposals to reimburse victims of bank transfer scams are half-baked in their current form and need further action, according to the Treasury Committee.

New financial regulations being considered by the Payment Systems Regulator (PSR) will require banks and building societies to fully reimburse victims of authorised push payment (APP) scams, where the loss is more than £100.

At least 196,000 people collectively lost £583 million to APP scams in 2021 according to the trade association, UK Finance.