The U.K.’s Payment Systems Regulator is escalating its inquiry into the role banks play in preventing money-transfer scams where consumers are tricked into sending funds to fraudsters.
The regulatory group this week issued a call for feedback from U.K. businesses about whether banks should do more to prevent fraudulent money transfers, following a call for action from Which?, a British consumer advocacy organization.
Which? last year submitted a complaint about rising incidents of so-called “push fraud,” where consumers are duped into authorizing funds—sometimes large sums—to criminals.
Which? has proposed that financial institutions take “meaningful action,” suggesting that banks establish policies similar to credit card protections that would enable consumers to get refunds in cases where they accidentally authorized bogus funds-transfers.
After reviewing Which?’s complaint, U.K. regulators this week said they would complete a full investigation into the funds-transfer fraud, with results expected in late August or early September.