APP scams voluntary Code extended to March 2020

In May 2019 UK Finance launched a voluntary industry Code which set new standards for the prevention of authorised push payment (APP) scams, where victims are tricked into sending money to a fraudster.

Victims who are customers of the signatories of the Code have benefited from more consistent treatment and reimbursement while the Code has helped the signatories to focus further investment in preventative measures to help them avoid being scammed at all.

In July, a formal request was submitted to Pay.UK on behalf of seven of the Code signatories who have provided interim funding for the ‘no-blame’ scenario under the Code. This request proposed a change to the Faster Payments Service Rules to finance a central fund to be used to reimburse victims of APP fraud in a ‘no-blame’ situation.

Pay.UK has rejected the proposal and as a result there is still no industry consensus to finance a central fund to reimburse innocent victims of APP fraud. However, there is a strong view across the industry is that in addition to delivering consistent outcomes for customers, any long-term funding arrangement should also take in to account the responsibilities that organisations outside the finance sector have in tackling fraud.

The signatories have agreed to continue the funding deadline to 30 March 2020 to allow more time to consider Pay.UK’s alternative recommendations on long-term funding arrangements.


Rachael Preston

Rachael Preston