// EXPERT PROFILE //
• a fear that the regulations may actually increase fraud levels because it prioritises reimbursement over crime prevention , potentially leading to more reckless consumer behaviour
• the reimbursement amount was too high and could push some businesses into bankruptcy
• a failure of the new rules to require social media companies to help with refund costs , despite a lot of APP fraud originating on those channels
Due to the major backlash within the industry , the PSR has amended the original reimbursement cap of £ 415,000 to £ 85,000 .
While the new regulations continue to be scrutinised , we welcome the fact that fraud is , rightly , high on the UK government ’ s agenda . By stepping in to hold more parties accountable , we ’ re confident the regulator ’ s approach will help tackle what is a national fraud epidemic . �
To the final point , Labour has drawn up plans to make tech companies responsible for compensating victims of online fraud . Under the proposal , which was put forward in June 2024 , prior to the General Election , banks would still have to reimburse fraud victims but could later reclaim some money from tech companies .
36 Intelligent SME . tech