UK regulator confirms slashed bank reimbursement cap for fraud victims

Banks and payment companies in Britain will only have to reimburse fraud victims by up to 85,000 pounds ($113,705) under a new regulatory regime that begins on October 7, the Payment Systems Regulator (PSR) confirmed on Wednesday.

The PSR, which has reduced the cap from an earlier proposed 415,000 pounds after an 11th-hour consultation, said the new limit would cover over 99 per cent of authorised push payment (APP) claims and give financial firms strong incentives to improve fraud controls.

APP fraud is when criminals trick people into transferring money to them.

"This was a carefully balanced decision – which provides significant protection to fraud victims and strikes an appropriate balance having regard to the PSR's innovation and competition objectives and making sure that payment systems work well for everyone," the regulator said in a statement.