Should Banks Automatically Compensate Victims Of Fraud?

The recent changes to the UK APP Scam reimbursement model don't extend to Jersey, the Cayman Islands or BVI. Considering the significant rise in these types of scams globally Governments should consider adopting this model to protect their local population.

Victims of Fraud

A victim of fraud is described as being someone who is tricked into sending money to a fraudster who is posing as a genuine payee.

Every year thousands of individuals and businesses, both here in Jersey and in the UK, fall victim to Authorised Push Payment (APP) scams. These scams often leave their victims feeling devastated, as the impact of losing their life savings is so dreadful.

In the UK, the Payment Systems Regulator (PSR) is putting pressure on all banks and financial institutions to take positive steps to stop these scams from happening and to better protect their customers when they do fall victim.