More than £10 million was lost last year in Scotland due to online and plastic card fraud but many victims are still in disputes with banks trying to reclaim lost funds. The multimillion pound fraud in 2010 was a bit less than the previous two years as consumers and banks are more alert about fraud but online, credit and debit card scams are still costing thousands of Scots as fraudsters are clearly getting more sophisticated.
Fraud victims are anxious to make sure that are no left empty pocketed as their household finances are tightened. The Financial Services Authority (FSA) has run the banks and building societies since 2009 and has stated that those making claims that unauthorized transactions must immediately be refunded unless of course their is obvious evidence that they themselves acted recklessly or fraudulently.
The company can recoup their funds if at a later date an investigation reveals that the customer committed fraud or had been grossly negligent in their actions. The burden of proof is on the bank under the FSA’s Banking Code of Business. The FSA’s code, under the payment services regulations state; in a case where the banking customer denies having authorised a payment is it the responsibility of the firm to proof the payment was authorised.
The bank must, within a reasonable amount of time, refund the amount of the unauthorised payment where a payment was not authorised by the customer. And they must restore the account to the state it would have been at had the payment had not taken place. Refunds must be taken care of immediately unless of course the bank can show evidence that suggests the customer did in fact authorise the particular transaction.