UK regulator proposes slashing bank payout cap for fraud victims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 04 2024
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Source: Reuters
New Reimbursement Cap Proposal: The Payment Systems Regulator (PSR) in Britain has proposed a reimbursement cap of 85,000 pounds for fraud victims, significantly lower than the previously expected 415,000 pounds, following a review that showed few cases exceeding the higher amount.
Impact on Fraud Prevention: While banks have expressed concerns about the risks of lower caps potentially encouraging fraud, the PSR believes this new limit will still cover most scams and incentivize financial institutions to enhance their fraud prevention measures.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
