UK banks Monzo Bank Ltd., Starling Bank Ltd., and Metro Bank Holdings Plc are the most targeted by online fraudsters employing "authorized push payment" (APP) fraud, according to a recent report. This method involves tricking customers into transferring funds to accounts outside of their control.
The report also shed light on the refund rates of different banks, revealing that TSB leads the pack with a 91% rate of reimbursing victims of APP fraud. In stark contrast, AIB Group (OTC:AIBRF) Plc trails behind with a mere 10% refund rate.
These findings come in the wake of regulations established in June, which require banks and payment companies to reimburse victims of APP fraud. The regulations also offer additional protections for vulnerable customers, a stance that has received backing from a Supreme Court ruling.
The report further disclosed the amount lost per million pounds at different banks, including Barclays Plc. However, specific details regarding these losses were not provided.
In response to the report's findings, UK Finance highlighted the financial services sector's substantial investment in fraud prevention. The organization also issued a call to action for the technology sector to bolster its efforts in preventing such crimes.
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