A new voluntary reimbursement scheme for consumers tricked into authorising scam payments came into force on Monday, but several major banks have so far declined to join the programme.
Fraud such as “authorised push payment” (APP) scams are on the rise, and increasingly make use of social media and information available via the internet to make the swindles difficult to spot.
Previously, banks only reimbursed customers if there was an obvious fault in the way the bank handled the payment.
As a result, out of £354m lost to APP-style scams last year, only £83m was repaid.
The scams affected some 84,000 bank customers last year.
The new scheme has been joined by eight banks, Barclays, HSBC, Lloyds, Metro Bank, Nationwide, RBS, Santander and Starling Bank, also covering the 17 brands those banks operate.