The Payment Systems Regulator (PSR) has provided an update on progress in relation to authorised push payment (APP) scams, where fraudsters trick customers into instructing their banks to make a payment to what the customer believes is a legitimate account.
Following a Which? super-complaint in September 2016, PSR, FCA and the payments industry developed a work program which has been attempting to reduce consumer harm arising from APP scams. The PSR December 2016 response to the super-complaint acknowledged APP scams were a growing issue and that more work needed to be done, sparking a range of initiatives to prevent scams and better respond to them when they happen.
The following progress has been made since the December publication:
- robust statistics on APP scams have been published, and from 2018 the payments industry will collect and publish more detailed data;
- the industry has developed best practice that payment service providers will follow when a victim reports a scam; and
- the industry has developed a common understanding of what information PSPs can share under current law when responding to APP scam claims.
Concerns were also raised as to the lack of reimbursement available for victims of APP scams. PSR is consulting on a potential reimbursement model whereby, in certain circumstances, victims will be compensated. PSR’s view is that the industry should lead the development of this model, and that it should be implemented industry-wide by September 2018. Consultation questions are available in the Annexes and the consultation period will continue until 12 January 2018.