The Public Accounts Committee report said the Home Office cannot solve the issue, which has an estimated cost of £10bn, on its own. It is thought that only 20% of online fraud is reported to police and banks have been accused of not doing enough to tackle the problem.

Responding to the news Stephen Jones, Chief Executive, UK Finance said: “The banking sector is committed to preventing customers falling prey to financial scams, investing hundreds of millions every year to tackle this growing issue and preventing £6 out of every £10 of fraud.”

“The fight against fraud and scams requires public and private sector organisations to work together. Sharing information between institutions is an essential part of the fight but current legislation does not provide adequate safeguards to allow this. We want to build on our current close partnership with the Government and regulators to make the changes necessary to protect customers and prevent more scams without slowing down genuine transactions, and to make it clearer to customers when they can expect a refund if they have been the victim of payment fraud.”