Responding to the publication of the consultation responses by the Authorised Push Payments Steering Group on its draft Voluntary Code, Stephen Jones, Chief Executive of UK Finance said:
“The finance industry is committed to ensuring consumers are better protected from the threat of authorised push payment scams, stopping money going to criminals and supporting customers if they become victims. The Voluntary Code will be an important part of this and so it is vital that we get it right. The industry, consumer groups and the regulator are working hard together to deliver a Code which sets out clear requirements for consumer protection and the principles for reimbursement.
“At the same time, banks continue to fight fraud on every front - investing in advanced security systems and new ways to track stolen funds, assisting law enforcement in tackling the criminals and supporting the government in improving how intelligence is shared.”
Background
Any case is one too many, but it’s important that we put the threat into context. In the first six months of 2018 the number of authorised push payment (APP) scams equated to approximately 0.0078 per cent of payments in that period and is equal to around 2.9 pence in every £100 processed. However, behind every case is a victim who has suffered loss - that is why the industry wants to do more and supports further steps to reduce APP scams and introduce measures in line with elements of the draft Code standards on what is expected of payment service providers (PSPs).
The finance industry is tackling authorised and unauthorised fraud by:
Investing in advanced security systems to protect customers, which prevented £705.7 million of unauthorised fraud in the first half of 2018, equivalent to £2 in every £3 of unauthorised fraud.
Delivering the Banking Protocol - a ground-breaking rapid response scheme through which branch staff can alert police and Trading Standards to suspected frauds taking place. The system is now operational in every police force area and in the first six months of 2018 prevented £14.6 million in fraud and led to 100 arrests.
Sponsoring a specialist police unit, the Dedicated Card and Payment Crime Unit, which tackles the organised criminal groups responsible for financial fraud and scams. In the first half of 2018, the Unit prevented £25 million of fraud and carried out 84 arrests and interviews under caution.
Working with Pay.UK to implement Mule Insights Tactical Solution (MITS), a new technology that will help track suspicious payments and identify money mule accounts.
Working with Pay.UK to implement Confirmation of Payee, an account name checking service for when a payment is being made that will help to prevent authorised push payment scams.
Hosting and part-funding the Government-led programme to reform the system of economic crime information sharing, known in the industry as Suspicious Activity Reports, so that it meets the needs of crime agencies, regulators, consumers and businesses.