Home Business Scottish banks among worst for getting fraud reimbursement decisions wrong

Scottish banks among worst for getting fraud reimbursement decisions wrong

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Banks are getting decisions about certain customer scams and reimbursement wrong with around eight in 10 cases seen by the ombudsman, according to Which? research.

Many banks have signed up to a voluntary reimbursement code on bank transfer scams, also known as Authorised Push Payment fraud (APP), which instructs them to reimburse customers who are not at fault and provide them with adequate support.

However, the number of new authorised fraud complaints – the vast majority of which relate to APP scams – made to the Financial Ombudsman Service (FOS) more than doubled in 2020-21, from 3,600 to 7,770.

Three quarters (73%) were upheld in favour of the customer. Authorised fraud also includes some card fraud, where the dispute is about whether the consumer authorised a payment or withdrawal with their card.

Which? said figures it had obtained from the FOS show NatWest and Royal Bank of Scotland are getting it wrong in 86% of cases, with Santander (82%)…

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