UK Banks Granted Extended Time to Combat Fraud

New legislation allows banks to delay suspicious payments by up to four days to investigate potential scams.

Banks will now have up to four working days to investigate payments suspected of fraud, extending the current next-business-day requirement.
The move aims to address the rising issue of authorized push payment scams, which cost UK consumers £460 million last year.
Banks are required to notify customers of any payment delays and compensate them for any resulting fees or charges.
The new rules are set to take effect at the end of October, following delayed implementation from an earlier proposed date.
Consumer groups support the measures but emphasize the importance of targeted and careful application to avoid unnecessary disruptions.