UK payments watchdog calls for the publication of fraud data

The Payment Systems Regulator (PSR) has announced its latest plans to fight fraud and protect victims of Authorised Push Payment (APP) scams.

According to UK Finance, which represents nearly 300 UK financial services firms, the latest figures show that in the first half of the year £355 million was lost to APP scams.

The PSR said that more action must be taken by the financial sector and across the digital ecosystem, including social media companies.

In its latest consultation, the regulator proposes publication of fraud data by banks. This requires that banks and building societies in the 12 largest banking groups in the country and two largest in Northern Ireland must publish data on their performance in relation to APP scams, on reimbursement levels for victims, and which banks and building societies’ accounts are being used to receive the fraudulent funds.

The authority has also called on the industry to improve scam prevention through intelligence sharing to enhance detection and prevention of these kinds of scams.

In addition, the PSR said it must be established how to best to make reimbursement mandatory to victims of APP scams once legislative changes have been made.

The organisation added that it intends to require the publication of fraud data and is “keen to work with firms” to identify the most appropriate ways this will be collected before the requirement comes into effect.

“Push payment fraud is posing an escalating risk to UK customers, with increasingly sophisticated scams that can be detrimental to people’s lives,” said John Glen, economic secretary to the Treasury. “The Government’s position is that liability and reimbursement requirements on firms need to be clear so that customers are suitably protected. It is welcome that the Payment Systems Regulator is consulting on measures to that end, and to help prevent these scams from happening in the first place.

"The Government will also legislate to address any barriers to regulatory action at the earliest opportunity.”

    Share Story:

Recent Stories


New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.