Suspicious Bank Payments may be delayed
Banks will soon have the authority to pause payments for up to four days, allowing them extra time to investigate potential fraud, according to the government.
Currently, payments must either be processed or declined by the end of the next business day. However, the new law will extend this window by an additional three days.
In the past, banks needed reasonable grounds to suspect fraud before conducting investigations, but they also faced pressure from customers demanding instant payments.
The long-anticipated regulations are set to take effect at the end of October.
The background…
Fraud remains the most prevalent crime in the country, making up a third of all criminal activity in England and Wales.
Criminals have stolen billions through schemes like romance fraud or by posing as legitimate traders to deceive victims into transferring funds.
Banks have advocated for more time to review payments, enabling them to scrutinize suspicious transactions more thoroughly. Under the new law, they’ll be able to investigate unusual spending behaviours, contact customers, and gather more information before transferring funds.
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