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PSR drafts plan for reporting Authorised Push Payment scams

Monday 13 February 2023 15:10 CET | News

UK-based regulatory body Payment Systems Regulator (PSR) has recently published its latest consultation on guidance to help PSPs provide correct data when reporting their Authorised Push Payment (APP) scams.

The PSR previously consulted on various measures to prevent APP scams and protect people who may fall victims of this type of online fraud in November 2022. 

The new consultation aims to see better protection for everyone from APP scams and, to do so, the previous consultations tackled important themes, including a requirement on financial institutions to report on the value, number, and reimbursement rates to victims facing this type of online crimes. 

This round of consultation aims for PSR to seek views on guidance for PSPs who will be required to publish data on their performance on APP scams. At the same time, the UK payments regulatory body mentions that the reporting will continue to develop in the following months of 2023, to provide a clearer image of financial institutions’ performance in the area. 


UK-based regulatory body Payment Systems Regulator (PSR) has recently published its latest consultation on guidance to help PSPs provide correct data when reporting their Authorised Push Payment (APP) scams.

 


APP scams on the rise in the UK

According to the PSR, Authorised Push Payment (APP) scams happen when a person or an institution (business) is tricked into sending money to a fraudster posing as a genuine payee. A recent survey showed that APP scams caused GBP 250 million in losses in the first half of 2022, in the UK alone. 

There are also different types of APP scams fraudsters appeal to, including malicious payee or malicious redirection. The first one refers to tricking someone into purchasing goods that don’t exist or are never received, while the latter refers to a fraudster impersonating bank staff to get victims to transfer funds out of their bank account into the bank account of the criminal. 

By providing the right regulatory tools for PSPs, these institutions can help people stay alert and ahead of fraudsters. At the same time, people should have access to relevant data regarding how well their banks and building societies will protect them if they become the victims of an APP scam.

What should people expect?

Based on the transparency and accuracy of the data, people can further identify which organisation will provide them the best protection and which ones need to raise the bar.
Based on the transparency and accuracy of the data, people can further identify which organisation will provide them the best protection and which ones need to raise the bar.Based on the transparency and accuracy of the data, people can further identify which organisation will provide them the best protection and which ones need to raise the bar.

The data will be collected and published on a six-monthly basis, with the first submission by firms being due in May 2023. The PSR will later publish its first report in October 2023. 

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Keywords: regulation, regulatory sandbox, APP fraud, fraud management, fraud detection, online fraud, payment fraud, transaction fraud, scam, PSP, report
Categories: Fraud & Financial Crime
Companies: Payment Systems Regulator
Countries: United Kingdom
This article is part of category

Fraud & Financial Crime

Payment Systems Regulator

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