Open Banking Expo’s Post

🔐 As the PSR's new rules on mandatory reimbursement for APP fraud losses come into effect, Mike Haley, chief executive officer of Cifas, considers whether they will tackle the growing threat from fraud or make the UK even more attractive to fraudsters. Read the article in full here ⬇ #fraud #fraudprevention #scams #openbanking #payments Hayley P. https://lnkd.in/ehN4NBsQ

Payment Systems Regulator Publishes Latest APP Scams Performance Report for 2023 David Geale, Managing Director of the PSR, said: “Today’s report highlights how payment firms tackled APP scams and the way they treated those who fell victim in 2023. We can see some positive changes with more victims being reimbursed than in 2022. But there is still more to do – particularly for some smaller firms which have much higher rates of receiving fraud than larger firms. “Our new mandatory reimbursement measures will dramatically increase protection for consumers. These come into effect on 7 October 2024, and we are already seeing payment firms innovating and improving their controls, which is key to preventing scams from happening in the first place.” https://lnkd.in/eJgsX3-B Amanda Myers Louis Myers MCIPR #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Authorised Push Payment fraud is on the rise, and some recent interesting developments in the UK pile the pressure on banks (arguably, irrespective of fault). In this post Guy Snow discusses recent developments and argues that you need to have a pre and post APP fraud plan - because as banking transaction scams will reach $6.8 billion worldwide by 2027, they're coming for you. https://lnkd.in/dFsMP6iF #APP #AuthorisedPushPayment

🚨 UK's APP Fraud Reimbursement Rule Now in Effect! 🚨 As of today, UK banks and payment firms must reimburse victims of Authorized Push Payment (APP) fraud up to £85,000. This landmark regulation aims to combat the £433 million lost to APP fraud in 20232. Key points: • Reimbursement cap: £85,000 ($111,000). • Applies to: Banks and payment firms. • Controversy: £100 claim fee may impact smaller fraud cases. While this is a significant step forward, the fintech industry calls for more collaboration, especially from tech giants and social media platforms, to truly tackle the root of APP fraud. Thoughts on this new regulation ? How will it impact the payments landscape ? #Fintech #FraudPrevention #UKRegulation #Payments #PSR #APP #Bank Payment Systems Regulator

Should only the banks / payment service providers be responsible for compensating victims of #APP fraud? As set out in this article by Ellie Duncan of Open Banking Expo, research conducted by the Payment Systems Regulator revealed that many more victims of #APP fraud had lost faith in social media platforms than had lost faith in “traditional banks”. Given the volume of #APP fraud claims that start online, it is easy to understand why there have been calls from the banking industry for social media platforms to be given financial incentives to prevent fraud. The Payment Systems Regulator has echoed the need for online marketplaces and social media platforms to take greater responsibility. #appfraud #psr #consumerfinance #bankinglitigation #fraud #banking

“The performance of the Code signatories demonstrates that a consistent, independently overseen approach to APP fraud detection and prevention can make a significant difference to preventing customer harm." - Emma Lovell, Chief Executive of the Lending Standards Board.   Read more from Emma in Open Banking Expo about how maintaining high standards in fraud prevention and detection is crucial for #ConsumerProtection: https://bit.ly/3LWdl9P #APPFraudReimbursement #ConsumerTrust #LendingStandardsBoard

There has been great debate as to whether the Payment Systems Regulator’s mandatory reimbursement scheme will result in a reduction in authorised push payment (APP) fraud. BBC News have reported a recent uptick in UNAUTHORISED payment fraud. Are we already seeing the changing landscape / implications of the PSR’s new regime? Is this increase due to fraudsters anticipating the banks will be implementing tighter controls on APP fraud? #appfraud #fraud #banking #bankinglitigation #retailbanking #psr #bbc #consumerduty

Delighted to have contributed to this article for Saga plc. on what the Payment Systems Regulator’s mandatory reimbursement scheme means for the over-50s. Following the introduction of the scheme, it seems likely that a significant proportion of reimbursement claims received by banks / PSPs will come from the over-50s. While anyone can fall victim to APP fraud, the older you are, the more likely you are to be targeted by fraudsters because they will gamble on older consumers potentially: (a) having more substantial savings; and (b) being less adept with technology (c.80% of APP fraud starts online). #APPfraud #fraud #retailbanking #bankinglitigation #psr #mandatoryreimbursement #saga https://lnkd.in/eH6sbWds

Banks' Scam Warnings Failing to Stop Customers from Taking Risks to Make Payments Nico Barawid, Co-founder of Tunic Pay, comments: “The PSR’s important new rules have placed more financial burden on banks than ever before to get a handle on the potentially £4 billion problem of APP fraud. The banks have channelled huge amounts of money and effort into creating friction to slow down payments and get customers thinking harder about who they’re sending their money to. Is the friction working? Not a lot. If two in three people aren’t paying attention to the warnings they click through, the system is broken and the fraudsters win. Slower payments don’t mean slower fraud.” https://lnkd.in/eeZQHEf7 Nicky Goulimis Carmen Dixon #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Great article by Helen Cahill in The Times highlighting an oversight in APP fraud protection rules. Effectively "on-us" transactions between two same banks aren't covered, and this extends to fintechs using the same underlying BaaS (Banking as a Service) providers. When fraud occurs between customers of the same bank or even between fintechs sharing the same BaaS, these transactions fall into a regulatory gray zone because they are effectively not occurring over Faster Payments despite in all ways seeming so to a consumer. This means that victims might not be reimbursed or protected, even if they bank elsewhere. Fintechs and banks shouldn’t exploit this loophole. Instead, they should leverage their knowledge of both sender and recipient to prevent APP scams. Industry data shows that increased visibility can lead to faster, more effective risk assessments and reduced fraud losses. Let’s use our collective resources to safeguard consumers and outsmart the fraudsters! https://lnkd.in/d8weeme3 #fintech #fraudprevention #payments #APPfraud #BaaS #regulation