UK regulators are set to significantly reduce the maximum amount banks and payment companies are required to reimburse fraud victims. Initially, the reimbursement cap was set at £415,000, but it will now be lowered to £85,000. This decision comes after strong pressure from ministers and fintech firms, who argued that the higher cap could incentivize fraud. The new regulation aims to balance the need to protect consumers while mitigating risks for financial institutions. Critics argue that this move amounts to corporate welfare, boosting bank profits at the expense of customers.