Kathy Gormley’s Post

I recently came across an article discussing the proposed fraud reimbursement measures for banks and FinTechs in the UK, and it sparked some interesting thoughts on the implications for the payments industry. I'm curious to hear your thoughts on this issue. How do you think these proposed measures will impact the payments industry? Will they effectively reduce fraud, or do they pose more risks than benefits? https://lnkd.in/eQbvcXVs #PaymentsIndustry #FraudPrevention #FinancialRegulation #FinTech #BankingInnovation

Some positive news for the fintech companies. This approach to dealing with fraud, prevention of it and the compensation of consumers feels balanced and on the right path.

Economic crime, such as Authorised Push Payment (APP) fraud, poses a major threat to the UK. Our second Coalition brings together experts from finance, tech, policy, and academia to combat this rising issue.   CFIT’s second Coalition will - 💰 Focus on APP fraud, which accounted for £459.7 million in losses last year 🤝 Collaborate with big tech, banks, fintech firms, and digital ID providers 🌐 Carry out data-driven research to protect businesses and consumers   We’re currently developing the core use cases and will announce the final cohort of partners over the summer. Stay tuned!   Read more in The Fintech Times: https://lnkd.in/ej92P3_m   #EconomicCrime #FraudPrevention #Payments #APPFraud

Generation Duped: Younger Generations More Likely to Have Been Victims of Financial Fraud Mark Munson, MD of Payments at Moneyhub comments: “Unfortunately, financial fraud is pervasive in our society, affecting people from all walks of life with often devastating consequences for people’s finances. While we already knew this, our research puts this into stark relief and throws up some startling misconceptions that fraudsters typically target the elderly. But having the data to hand also presents interesting findings which allow us to consider how to reduce the scale of the issue.” https://lnkd.in/eUPDxbvC Sam Peploe Emily Mellon Ingrid Anusic Samantha Seaton Kirsten Ward Hannah Swales Tadiwa Wazara #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

"Why does lobbying determine something like this? Surely, there should be a review and an appropriate limit set independently?" [Hibble, Financial Times] This article (by Akila Quinio and others) was published in the FT late yesterday - the Payment Systems Regulator is clearly under massive pressure from industry lobbyists (UK Finance, The Payments Association, etc.) Despite the strong headline, the body of the article states that: - ANOTHER consultation is expected on the new limit (perhaps it will be adjusted after this policy comes into force?) - PSR will publish results of research on recent payment fraud (hopefully volumes and values vs different thresholds) - PSR declined to comment on whether it would lower the threshold from £415,000 (rightly keeping its powder dry) I thought the above highly rated comment from a FT reader was on point - i.e. let the PSR do its job. #APP #AuthorisedPushPayment #Fraud #EconomicCrime #banking #PSP #payments #fintech https://lnkd.in/eB9xXyCz

Please respond to the new Payment Systems Regulator consultation. I also want to see a debate on how fintechs can access the right data at the right cost to onboard safely and avoid criminals opening accounts

After 14+ years in Fintech, I find these type of stats unbelievable, more needs to be done to protect consumers by taking the fight to fraudsters. The tech is there, the policies can be written, the controls on social platforms can be enforced properly and the banks can 'own it' a lot more. Gullibility is actually an excuse. We all know friends or family members that are too good natured to doubt, or are a little green when dealing with the big bad world. Not having pro-active and effective ever-evolving controls in place, is not an excuse! #payments #fraud #fintech #banking #encoded https://lnkd.in/eP4-cYt5

New Report From PSR Shows How Fraudsters Exploit Major Platforms To Scam Consumers Read more: https://lnkd.in/dVe42Z3M #PSRReport #FraudPrevention #ConsumerProtection #ScamAwareness #DigitalFraud #FintechSecurity #Finance #Fintech #FinancialIT

Revolut 'named in more fraud complaints than any major UK bank', investigation finds 🔎 Britain’s newest bank has been named in more fraud complaints than any other major UK bank, an investigation has found, as it grapples with the strictures that come with its new banking licence. ➡ https://lnkd.in/ebfbVq7z 🔗 #baking #fintech #finance #tech #uktech #fraud #digitalfraud #financialcrime

UK’s New Anti-Fraud Rules Risk Misfiring as Banks Struggle to Comply UK financial firms are scrambling to meet an October 7 deadline to comply with new regulations aimed at curbing online payment scams, but many are warning of potential chaos. The Payment Systems Regulator (PSR) now requires banks, fintechs, and payment companies to refund fraud victims within five days, responding to a surge in authorized push payment (APP) scams. Losses from these scams hit £460 million last year, with events like Taylor Swift’s London concerts giving scammers new opportunities. Despite the acknowledged need for tougher measures, the rollout has been plagued by challenges. Some industry leaders, like ClearBank CEO Charles McManus, criticized the process as “sclerotic and ambiguous,” citing a lack of clarity and preparation time. A significant change under the new rules is the shared liability between sending and receiving institutions, with a maximum reimbursement of £415,000. Banks must now prove gross negligence by the customer to deny a claim, a move that has sparked concerns over potential moral hazard and increased fraud. Digital challengers like ClearBank and Revolut argue that Big Tech should share responsibility, as many scams originate on social media platforms. Revolut’s UK CEO, Francesca Carlesi, stressed the need to reduce fraud’s overall impact, even as the company readies for the new regime. Compounding the issue, Pay.UK, tasked with setting up the infrastructure for refunds, is racing to onboard 1,500 firms by the deadline. However, with only one demo and no test runs completed, doubts linger over the system’s readiness. Despite industry concerns, the PSR remains committed to the timeline, insisting the measures have been thoroughly consulted on for over two years. Kate Fitzgerald, head of policy, said the regulator continues to work closely with the industry for a smooth implementation. The stakes are high, with the new rules seen as vital for restoring consumer trust. But with the deadline looming, many insiders warn of significant disruptions, questioning if the industry is fully prepared. “Fraudsters will be ready for October 7, but I don’t think the industry will,” said Sara Cass, chief compliance officer at IFX Payments. Source: https://lnkd.in/exyHgDJ9 #scams #fraud #UK #banks #regulations #compliance #financialcrime #APPscams #APP #payments #paymentfruad #paymentscams Nigel Morris-Cotterill Steve Tunstall