Victims of bank transfer fraud will in the future be able to apply to a formal compensation scheme under plans set out today by the Payment Systems Regulator.

The financial watchdog has responded to a super-complaint lodged by Which? over a year ago regarding concerns that banks are able to shirk responsibility for money lost to bank transfer fraud, sometimes known as "push payment" scams.

This has been subject to a major campaign by Telegraph Money, in which we have highlighted numerous cases of victims who have lost life-changing sums.

Unlike fraudulent transactions on credit or debit cards, where banks are generally liable for losses, with transfers made to criminals' accounts banks have no technical liability.

Until now no single industry body has any specific data relating to bank transfer fraud despite Telegraph Money's call for this crucial information to be reported and shared.

UK Finance has today revealed that push payments scams is now the second biggest type of payment fraud, after card fraud, in both number and total value involved.