On October 7, a new rule will be introduced by the UK Payment Systems Regulator for UK-based banks and PSPs, which will see fraud victims receive compensation up to a maximum of £85,000 within five days. After the refund has been paid, the victim’s PSP can recover half of the compensation from the fraudster.

But the PSR has made it clear that the new rule will only affect accounts in Britain.

“Channel Islands customers will only be covered by the refund rules if they are a customer of a bank/PSP based in mainland UK – and where the account is held there,” a spokesperson said. ‘If a PSP is based in the Channel Islands and/or the account is held there, the customer will be out of scope.’

He added that extending the rules to the islands would be a matter for local governments and regulators.

A spokeswoman for the Guernsey Financial Services Commission said the Bailiwick of Guernsey does not have a mandatory refund system for authorized push payment fraud, which involves transferring large amounts of money from the victim’s bank.

But “the committee expects all payment service providers to handle such matters expeditiously and to take the lead in combating crime in this area,” she says.

‘We are committed to the fight against financial crime and fraud and expect all companies we supervise to act with due skill, care and diligence towards their customers and to handle customer complaints thoroughly and promptly.’