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MPs reject ‘fundamentally flawed’ plans to transfer responsibility for repaying scam victims to banking sector
MEPs have criticized ‘fundamentally flawed’ plans to transfer responsibility for compensating scam victims to a banking sector body.
The Treasury committee said if Pay.UK were made responsible for getting money to customers, the scheme’s ‘painfully slow’ set-up could be further delayed.
Harriett Baldwin, chair of the committee, said it was “like asking a fox to guard the chicken coop.”
‘Fundamentally flawed’: The plans revolve around authorized push payment fraud, tricking account holders into sending someone a payment
The plans target authorized push payment fraud, tricking account holders into sending someone a payment.
The Payment Systems Regulator is proposing to force banks to refund victims in full within two days of reporting the scam, in cases where the loss exceeds £100.
In today’s report, MPs say transferring responsibility for the scheme to Pay.UK, which is backed by banks and building societies, creates an ‘inherent conflict of interest’.
The plans have already been pushed back to 2024. Baldwin said the proposals are a step in the right direction, but implementation is “fundamentally flawed.”