Banks are blaming customers for falling victim to fraud and refusing to refund money in almost half of cases, a study has shown.
According to research by consumer group Which? nearly four in ten victims of “transfer fraud” (37pc) did not get any money back from their bank following the incident.
Common transfer scams involve fraudsters convincing people to pay for fake goods, services and investments by transferring a lump sum into their bank account.
Once the money has entered their account it is quickly withdrawn in cash and the account is shut down, meaning most are never caught.
By refusing to offer a full or partial refund for lost funds banks are failing to admit their own failings and are pushing 100pc of the blame onto customers, Which? said.
According to the survey, 41pc of people who had been scammed lost between £1,001 and £10,000, 50pc lost up to £1,000, and 6pc lost £10,001 or more.
In September last year Which? made a super-complaint to a financial regulator, calling on the industry to do more to better protect its customers from bank transfer scams.
But it says they are still not doing enough and is demanding updates on progress they have made.
A spokesperson for the Payment Systems Regulator said: “There is no quick fix to authorised push payment fraud, and it isn’t something that any organisation, including the PSR, can tackle on its own.
A spokesman for Financial Fraud Action UK, said: “We have agreed a clear action plan with the regulator on push payment fraud and the industry is working hard to deliver this to the agreed timetable. We are exploring new ways to track stolen funds moved between multiple bank accounts.
“We are also running our largest ever fraud awareness campaign.”