Millions of bank fraud victims to have payouts slashed under big change to new rules expected in weeks

FRAUD victims who have been tricked into sending money from their accounts will see compensation slashed under “outrageous” new plans.

Banks had been set to offer up to £415,000 to reimburse customers when they have unwittingly handed money to fraudsters under rules coming in next month.

But now the cap is likely to be lowered to £85,000, the Payment Systems Regulator (PSR) today announced.

The move had...