Payments regulator slashes maximum fraud compensation limit

The Payment Systems Regulator (PSR) planned to reduce fraud compensation limits for scam victims from £415,000 to £85,000, aligning with the Financial Services Compensation Scheme. Despite pressure from ministers and industry stakeholders, the PSR justified the change by citing a low number of high-value fraud cases and the need to strike a balance between consumer protection and industry competition. Consumer watchdog Which? criticized the move, expressing concerns about reduced protections and incentives for payment firms to enhance fraud security measures.

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