Banks are turning down compensation for 77% of fraud victims and blaming them for their losses, despite industry commitments not to.
Most of the main high street banks and building societies have signed up to a voluntary code from the Lending Standards Board (LSB) that pledges to reimburse victims of scams unless it is believed the customer’s own negligence led to the fraud.
This typically applies to authorised push payment (APP) frauds, where someone unwittingly transfers money from their own bank account to a scammer.
Consumer watchdog Which? analysed LSB data from when the code was launched in July 2019 to May 2020.
The figures show banks told 77% of fraud victims that they were partially or fully to blame for losses.
Customers were found to be fully at fault for 60% of payments, so didn’t get any money back.
Another 17% were assessed as ‘shared blame’, where the customer’s bank or the receiving bank accepted partial responsibility, which…