Consumer expert tells banks to not blame customers for scamsÂ
The warning comes from the Financial Ombudsman Service ahead of the introduction of a new code of conduct to tackle the surge in so-called '˜transfer scams.'
The News' Streetwise column has been at the forefront of taking on the banking sector for jumping to conclusions about customers' credibility after falling for rogue investment scams.
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Hide AdReaders have been refunded £15,000 when a fake online video tricked them into investing their money with unregulated crypto currency dealers.
From the September 1 it will become increasingly difficult for banks to avoid refunding fraud victims by claiming they have been '˜grossly negligent', as criminals have become adept at deploying sophisticated and credible scam methods.
Chief ombudsman Caroline Wayman said: '˜Both banks and their customers frequently tell us in strong terms they haven't done anything wrong.
'˜But it's not fair to call a customer grossly negligent simply because they've fallen for a scam.'
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Hide AdStreetwise reminds readers banks can only refuse a refund for unauthorised payments if it can prove their customer specifically authorised the transaction.
A bank simply cannot assert that the use of a password, card, or PIN number conclusively proves payment had been authorised.
Banks have to prove a customer was at fault because they acted fraudulently or because they deliberately failed to protect their card details, PIN, or password in a way that permitted the transaction to proceed.
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