Watchdog group The City has said that the millions of people targeted by credit card fraudsters every single year should be treated better by banks, who often drag their heels over refunding the money that victims have had illegally taken from them. Fraudsters have a range of tools and techniques at their disposal to defraud cash from unsuspecting consumers.
Credit card fraud remains one of the most commonly executed types of fraud. The Financial Conduct Authority say that around 1.5 million people are affected by this type of fraud every single year. Typically, this means that card details are stolen or otherwise obtained, and then used illegally to take money from a person’s account or from their line of credit. Individual frauds may cost a consumer hundreds, thousands, or even more.
Banks and card issuers are often supposed to refund money where it can be proven that fraud has taken place. While some banks are quick to respond, and consumers receive their refund in very little time, this isn’t always the case. Some have been accused of deliberately dragging their heels over making the repayments, and this means that consumers are left without access to the money that they have had taken. The City, a consumer finance and banking watchdog, has investigated these claims. The City group has said that it will be investing whether or not card issuers have intentionally taken part in schemes to avoid or delay repaying money to their customers.
The group also said that consumers are entitled to receive their money quickly once fraud has been recognised and identified. Consumers should be treated fairly, but there are instances of consumers being told that because bank software is secure it is the customer’s fault.
The companies are responsible for ensuring that their accounts are not open to fraudulent attack, and this means that banks and card issuers have a responsibility to foot the bill for fraudulent charges and withdrawals made against their customers. This means that they should refund the money quickly, to help ensure that consumers are not left without access to their own money.