Tunic Pay: Over 70% of UK Adults Unaware of New Reimbursement Rules for Payment Scam Victims

The UK public is largely unaware of new regulations forcing UK banks to reimburse victims of payment scams, weeks after coming into effect, anti-fraud fintech Tunic Pay has revealed. 

On 7 October, the Payment Systems Regulator (PSR) mandated that all UK banks must repay customers who are victims of payment scams up to £85,000 per case. However, a Tunic Pay survey of 2,000 UK adults, conducted by independent market research consultancy Opinium, reveals that less than three in ten (29 per cent) UK adults are aware of the new regulations for victims of payment scams.

After being told of the new rules, that significantly ease the financial burden should they fall victim to a payment scam, 60 per cent of respondents consider them fair. Meanwhile, 67 per cent believe these rules will make banks do more to protect their customers from falling victim to fraud in the first place.

Another 49 per cent believe that the rules will alleviate people’s concerns about getting scammed, knowing that they can get some reimbursement for financial losses.

Addressing scams at source

However, while the majority are in favour of the rules, 71 per cent of UK adults remain worried that they won’t solve the problem of preventing scams before they happen. Of those aged 55 and over, this rises to 80 per cent.

Additionally, less than half (43 per cent) of people believe they will be an effective way of reducing fraud overall, falling to 38 per cent among people aged 55 and over.

Nicky Goulimis, CEO of Tunic Pay

“It’s concerning that public awareness of APP scam reimbursement remains so low,” says Nicky Goulimis, CEO of Tunic Pay. “While the new rules provide important protection and peace of mind, they don’t address the core issue – preventing scams in the first place.

“Fintech providers and banks have a unique opportunity here to use scam detection and invest in preventative technology that makes customers feel genuinely safeguarded, rather than merely reimbursed, after the fact.”

Less than one in ten (nine per cent) of respondents believe that banks aren’t going to start to make it harder for people to prove that scams weren’t their fault so that they don’t have to pay out. This drops to six per cent of those aged 55 and over.

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