UK Finance has announced that banks will be able to refund victims of bank transfer fraud themselves rather than out of an interim shared pot of cash.

The trade association said the central pot had originally been set up in the hope that a long-term solution, also involving online platforms, would be set up to c ontribute to customer refunds, but has not yet happened.

Scams often originate outside the banking industry with some arising from information gained through firms’ data breaches, which can be used to make frauds appear more convincing, or from fake online adverts for products such as investments.

Banking giant Lloyds said there needs to be as much focus on scam prevention as refunds.

Katy Worobec, managing director of economic crime at UK Finance, said: “The interim funding pot was originally set up because we had asked that the UK Government and regulators work with…

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