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<p>When an individual has had money fraudulently taken from their account, such as
an unauthorised payment or ‘card not present’ fraud, in most circumstances the payment
services provider must reimburse the customer for their loss.</p><p> </p><p>In other
types of fraud, where an individual has been tricked into authorising the payment
to the fraudster, commonly known as Authorised Push Payment scams (APP), consumers
have less protection. The Government recognises that fraudulent transactions of this
type can significantly impact those affected.</p><p> </p><p>The Joint Fraud Taskforce
(JFT) and Payment Systems Regulator (PSR) have work in hand which will make it easier
for victims of this type of fraud to claim compensation or receive a reimbursement
following their loss.</p><p> </p><p>The PSR has now consulted on a ‘contingent reimbursement
model’ for victims of APP scams and has established a steering group of consumer representatives
and banks, including the Home Office, to design an industry code by September 2018,
with a view to the final code being in place in early 2019. The aim of this code is
to reduce the incidence of APP scams, and set out rules on how industry should reimburse
consumers in certain scenarios.</p><p> </p><p>The long term ambition of the JFT is
to introduce a funds repatriation scheme. The scheme will enable banking providers
to trace, freeze then return stolen money back to the victims of fraud. We are currently
working with the private sector to assess the legal and regulatory issues with implementing
a fully functioning scheme.</p>
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