TSB has warned that a proposed fraud refund scheme could exclude victims of social media scams on the likes of Facebook, Instagram and WhatsApp.
The major bank has issued a warning about the Payment Systems Regulator’s proposed refund mechanism which is due to be introduced next year.
The plans would allow banks to adopt a £100 threshold which TSB says could lead to around a quarter of fraud victims being denied reimbursement.
The banking company has called on the regulator to also reconsider the plans for a £35 excess fee per claim since this would disproportionately impact financially vulnerable people amid a cost-of-living crisis.
Quarter of fraud victims may be excluded by £100 threshold, TSB warns
Cases under £100 account for a small amount of overall fraud losses – at one percent, according to the latest fraud data from the UK Financial Investments Limited.
This equates to a projected £5 million stolen from UK households every year on current fraud rates.
TSB has analysed the types of fraud that fall under the proposed £100 threshold.
According to its data, Purchase Fraud is a key driver of fraud across the industry and accounts for over two-fifths (44%) of all sub-£100 fraud cases.
A significant number of consumers who have fallen victim to social media scams could be…
