Earlier in 2023, the UK Payment Systems Regulator (PSR) published a new rule requiring banks and building societies to adopt CoP as a means of reducing the number of individuals and businesses falling victim to authorised push payment (APP) scams. CoP is being rolled out in phases across the industry, with the final phase scheduled for October 2024.
Figures from UK Finance reveal that in the first six months of 2023, GBP 239.4 million was lost to APP fraud, with the number of cases rising 22%. Recognising the pervasive threat of APP fraud, and in line with its commitment to upholding the highest financial integrity and security standards, Clear Junction has introduced its CoP service a year ahead of the PSR’s mandatory schedule.
Clеar Junction’s officials havе highlightеd thе rapid growth of APP fraud alongside rеal-timе payments. As an innovative service provider, Clеar Junction is proactively addressing this challеngе by adjusting thеir controls to minimisе opportunitiеs for fraudstеrs. Thеy rеcognisе thе dеvastating impact of fraud on victims, еmphasising thе sophistication of APP fraud mеthods that can еvеn dеcеivе tеch-savvy individuals and businеssеs. To combat this, the company has introducеd thе CoP service. Thеy also underline thеir rеsponsibility to еnsurе payments adhere to regulations and viеw thе CoP sеrvicе rollout as a stеp toward enhancing sеcurity and building trust in the financial ecosystem.
CoP is a way for financial institutions to verify the accuracy of accounts sending and/or receiving funds. When a customer triggers a payment initiation request, CoP involves checking the name of the account to which payments are being made prior to the execution, thereby reducing certain types of fraud and misdirected payments that occur through user error.
Traditionally, payers would provide their payment service provider with the payee’s details, such as the bank sort code and account number, along with the name of the person or organisation that the funds were being sent to. The institution facilitating the payment would then check the sort code and account number and, if everything was deemed correct, the funds would be sent. However, this method lacked the security checks needed as payers had no means of checking the name of the account against these details.
The introduction of CoP means that all details can now be cross-checked, and any discrepancies prevent the payment from being processed – making it virtually impossible for APP scams to work.
Clear Junction is committed to continually implementing measures to enhance fraud protection for its clients and their end users. Alongside launching the CoP service, it recently achieved the globally recognised ISO 27001 data security standard, assuring clients and their customers that their transaction data is protected in accordance with the strongest possible industry standard.
Clear Junction is a global payments solutions provider that was established in 2016. The company was founded by a veteran team of financial professionals with many years of experience in cross-border payments and banking. Over the years, they have worked tirelessly to build and develop their own proprietary technology to facilitate an end-to-end regulated payments solution.
The company is licensed and regulated by the Financial Conduct Authority and has offices in multiple locations across the UK and Europe, including London, Poland, and Latvia.
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