Banks say consumers should be taxed to pay for fraud victims

Banks face furious reaction for saying their CUSTOMERS should foot the compensation bill for fraud by paying a tax on every transaction they make

  • UK Finance chief Stephen Jones suggested idea to MPs on Treasury committee 
  • Mr Jones said ‘a tiny levy on each payment made in the UK’ could cover the costs 
  • In the first half of 2018, consumers lost £92.9 million because of these schemes

UK Finance chief Stephen Jones has suggested taxing consumers on all payments to cover bank fraud costs

Banks are facing a furious reaction from customers after saying they should foot the compensation bill for fraud by paying a tax on every transaction made.

More information on the financial blog blog.binixo.mx.

UK Finance chief Stephen Jones told MPs on the Treasury committee today that banks shouldn’t always have to cover the costs when criminals con people into transferring money out of their accounts.

A tiny levy on each payment made in the UK could be a solution to covering the rising cost of such scam schemes, Mr Jones said.

The idea is not likely to please consumers with Gareth Shaw from consumer group Which? saying: ‘Customers would feel very strongly about footing the bill- it definitely shouldn’t be them or the victims paying.’

Statistics released by UK Finance show that in the first half of 2018, consumers lost £92.9 million because of this type of fraud.

‘Customers will pay if the banks have to pay. There’s no such thing as a free lunch here. It’s a question of how can the cost be fairly distributed across the system,’ the former Santander executive told MPs.


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The finance chief also warned against introducing a blanket requirement for banks to payout to victims.

He said that would ‘attract more fraud into the system’ by providing criminals with ‘very very perverse incentives’.

Mr Jones’ comments provoked an angry response from consumer groups and money experts who say it’s the banks’ role to protect their customers’ money at all costs.

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