What Happens If I Become a Victim of Fraud as a Customer?

If you become a victim of fraud while using our Service, such as during money transfers or cross-border payments, it is essential to understand your rights and the steps you need to take to address the situation. Depending on the jurisdiction, you may be entitled to reimbursement, and there are various regulatory bodies that provide support to victims of fraud. This document outlines what happens when you fall victim to fraud as a customer of a money service business (MSB) in the United Kingdom (UK), United States (US), Canada, and Nigeria, including your legal rights, reporting agencies, and steps to take to resolve the issue.

1. United Kingdom (UK)

Legal and Regulatory Framework:
In the UK, MSBs are regulated by the Financial Conduct Authority (FCA). The Payment Services Regulations (PSRs) and Consumer Duty framework provide the basis for consumer protection, including fraud cases. Additionally, the Financial Ombudsman Service (FOS) handles disputes between consumers and financial businesses. Under the Authorised Push Payment (APP) Scam Reimbursement Rules (effective from October 2024), customers who fall victim to APP fraud are entitled to reimbursement in certain cases.

Your Rights as a Customer:
If you fall victim to an APP scam, you may be eligible for full reimbursement under the new rules, provided you haven't acted with gross negligence. In some cases, you may be required to pay an excess fee of £100 unless the MSB waives it or you are considered to be a vulnerable customer.

What to Do:

1. 1. Contact us immediately to report the fraud, if it happened on our platform.
2. 2. File a report with Action Fraud: www.actionfraud.police.uk or call 0300 123 2040.
3. 3. If your claim is not resolved to your satisfaction, escalate it to the Financial Ombudsman Service (FOS): www.financial-ombudsman.org.uk.

Important Links:

• Action Fraud: www.actionfraud.police.uk

• Financial Ombudsman Service: www.financial-ombudsman.org.uk

2. United States (US)

Legal and Regulatory Framework:
In the United States, MSBs are regulated by FinCEN (Financial Crimes Enforcement Network) under the Bank Secrecy Act (BSA). Consumers are also protected under the Electronic Fund Transfer Act (Regulation E) and the Consumer Financial Protection Bureau (CFPB). Fraud involving money transfers or payments may be eligible for reimbursement under these regulations.

Your Rights as a Customer:
Consumers may be entitled to reimbursement for unauthorized transactions, provided they report the fraud within 60 days. However, voluntary fraud (such as romance scams) may not be covered by reimbursement policies.

What to Do:

1. 1. Contact us immediately to report the fraud, if it happened on our platform.
2. 2. Report the incident to the FTC: www.reportfraud.ftc.gov and IC3 (www.ic3.gov).
3. 3. If the issue is unresolved, escalate to the CFPB for further assistance: www.consumerfinance.gov.

Important Links:

• FTC Fraud Report: www.reportfraud.ftc.gov

• IC3: www.ic3.gov

• CFPB: www.consumerfinance.gov

3. Canada

Legal and Regulatory Framework:
In Canada, MSBs are regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Consumer protection in fraud cases is handled by the Financial Consumer Agency of Canada (FCAC) and the Canadian Anti-Fraud Centre (CAFC).

Your Rights as a Customer:
In Canada, MSBs are not legally required to reimburse victims of fraud unless they fail to follow internal controls. However, many financial institutions voluntarily investigate fraud cases and may offer refunds based on the investigation's findings.

What to Do:

1. 1. Contact us immediately to report the fraud, if it happened on our platform.
2. 2. Report the fraud to the CAFC: www.antifraudcentre-centreantifraude.ca or call 1-888-495-8501.
3. 3. If unresolved, escalate to the FCAC for assistance: www.canada.ca/en/financial-consumer-agency.html.

Important Links:

• CAFC: www.antifraudcentre-centreantifraude.ca

• FCAC: www.canada.ca/en/financial-consumer-agency.htm

3. Nigeria

Legal and Regulatory Framework:
In Nigeria, MSBs are regulated by the Central Bank of Nigeria (CBN), while fraud cases are handled by the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Cybercrime Unit. Suspicious activities/Transactions are reported the Nigerian Financial Intelligence Unit (NFIU). The Consumer Protection Department at the CBN provides oversight for consumer issues, including fraud.

Your Rights as a Customer:
Currently, there is no statutory requirement for MSBs to reimburse customers for fraud in Nigeria, but MSBs may voluntarily investigate fraud claims and may refund customers if negligence is proven on their part.

What to Do:

1. 1.Contact us immediately to report the fraud, if it happened on our platform.
2. 2. Report the fraud to EFCC: www.efccnigeria.org and the Nigerian Police Cybercrime Unit.
3. 3.File a complaint with the CBN Consumer Protection Department if necessary: www.cbn.gov.ng.

Important Links:

• EFCC: www.efccnigeria.org

• Nigerian Police Cybercrime Unit: www.nigerianpolice.org

• CBN: www.cbn.gov.ng

General Notes

1. 1. Reimbursement is not guaranteed in all countries unless it is stipulated by law or the provider's policy.
2. 2. Victims of fraud should report the incident to law enforcement and cooperate with their investigation.
3. 3. Always monitor your financial accounts after a suspected fraud event and notify your bank immediately if you notice suspicious activity.
4. 4. Scams often target the elderly and vulnerable, so it’s important to stay vigilant and report fraud as soon as possible.