(Reuters) – Banks in the UK could be fined if they make selective and arbitrary decisions to offset customers who have been exposed to fraud, said the Financial Conduct Authority's supervisor on Wednesday.
A code of conduct aimed at ensuring that the offer increased protection comes into force on 28 May.
Mark Steward told a parliamentary committee while the code is voluntary "if we see banks under the code behave in a very inconsistent manner and make selective arbitrary decisions about what to compensate and what they don't … we can consider it as a very worrying thing.
"And it can give rise to enforcement action if we see significant poor compliance with the code."
Consumers lost nearly £ 93 million ($ 1
People are being deceived into accepting a payment to an account t, either by phone, online or in person, which they mistakenly believe belongs to a legitimate payee. money is fraudulently obtained "volumes in the 21st century."
Customers of banks report They adhere to the latest good practice, which becomes the victim of an app scam, will be replaced if their bank fails to comply with code standards and if they did everything that was expected of them under the code.
Some banks have not yet registered. Others have promised to move on.
Mr. Steward also told the Nomination Committee's all-party committee's report on financial crime that the banks faced fines that could "risk" their customers' deposit base if their systems and controls failed to protect personal account holders against cyber attack.
FCA October fines Tesco Bank nearly £ 16.5 million after cyber attackers exploited deficiencies in the challenger bank's debit card design and financial crime controls. The fraud amounted to £ 2.26 million.
"I think we introduced a fine that was calculated based on the bank's entire customer deposit, sending a message to the banking sector, especially that they really must get it right because if they are not, potentially, that deposit base is completely in danger. ] "The whole sector handles a need to increase and raise the game relative to these kinds of protection," he said. 19659002]