Suhel Singh, MBA’s Post

Well done David Geale and the Payment Systems Regulator for sticking to the plan and the 7th October implementation date. The need for regulatory intervention in the #UK is clear, evidence-based - and has been a long time coming. Only when the right incentives are in place will we see Payment Service Providers (from #banks to #fintech) change their behaviour and fully assume their duty to customers and society by being more proactive in their efforts to reduce #EconomicCrime. The cost of fraud to #victims, the national and global #economy is enormous - and a #PSP is best placed to deploy and evolve preventative measures. If a firm cannot afford to protect its customers and the associated liability for the business it writes, then it either needs a better business model and/or processes, or should leave the market to others that do. https://lnkd.in/eWnTNMZW #Regulation #Payments #CRM #AuthorisedPushPayment #APP #Fraud #Crime #Police

Zelle is an online payment platform that allows nearly instantaneous transfers of cash from one account to another. Its popularity with consumers has made it a target for scammers due to its irreversible, nearly instantaneous transfers, which cannot be stopped or disputed once sent. The Consumer Financial Protection Bureau (CFPB) is investigating whether banks offering Zelle are adequately protecting consumers from scams and promptly shutting down scammer accounts. Several fraud risk concerns from regulators are that banks: 1)     May not be doing enough to identify and prevent scammers from creating accounts on Zelle in the first place 2)     Are not acting quickly enough to shut down scammer accounts once a scam is reported 3)     Are required to reimburse for unauthorized transactions but Not for authorized payments to scammers, leading to many users not recovering their lost money Potential solutions include delaying fund availability for withdrawals, imposing more restrictions on adding new recipients, and enhancing user awareness of risks. This will change cash management and funds availability for consumers and businesses. The tradeoff between convenience and safety is the risk question. It is time to review existing regulations and update payment process laws in our digital world. What changes would you recommend for banks to combat fraudulent schemes from bad actors? #RiskManagement #Fraud #Payments #Leaders Longview Leader Corporation Check out the LA Times article August 8, 2024, “Zelle scams prompt federal probe into whether banks are doing enough to protect customers."

🧨 Last-minute update for UK payment firms 🧨 The APP fraud reimbursement threshold is likely to drop from £415k to £85k. This brings the limit in line with the Financial Services Compensation Scheme, which protects bank deposits. The PSR plans to release data on how much fraud involves transactions over £85k, which most cases are likely to be covered. ➡️ https://lnkd.in/gcRg2m_g #UKFinance #FraudPrevention #Regulation #APP #HorizonScanning #RegTech

The PSR’s latest report covering 2023 includes the UK’s 14 largest banking groups, along with the data for eleven other smaller firms that were in the top 20 highest receivers of fraud. The smaller firms are included as they represent a disproportionately high level of fraud received. With this data, you will be able to see the full extent of how well your bank has performed in tackling APP fraud and how they treated victims in the last year, compared to other UK banks and payment firms. This data covers: - Reimbursement to victims (from the largest 14 banking groups in Great Britain and Northern Ireland) - How much money is sent from victims’ accounts by each payment firm as a result of APP scams (from the largest 14 banking groups in Great Britain and Northern Ireland) - How much money is received into fraudsters’ accounts by each payment firm as a result of APP scams (covering scams sent from accounts held with the 14 largest banking groups in Great Britain and Northern Ireland to any UK payment firm) https://lnkd.in/gsbCc8Ax #payments #fraud #uk #banking

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

As was widely anticipated, the Payment Systems Regulator has confirmed that the maximum reimbursement limit for victims of authorised push payment scams from 7th October will be £85,000. While the PSR says this cap, which is in line with that of the Financial Services Compensation Scheme, will cover 99% of claims, the debate around whether it should be higher - remember, the mandatory reimbursement cap was initially going to be set at £415,000 - or much lower is certain to continue. We anticipate significant demand will remain for litigation funding for bank fraud claims where disputes continue to arise between banks and consumers as to whether reimbursement should take place. What do you think about the confirmation of what will come into effect on 7th October? Has the PSR got this one right, or is it an imperfect solution that satisfies nobody? #BankFraud #APPFraud #LitigationFinance #LitigationFunding

It’s less than 3 weeks until the new mandatory reimbursement for APP fraud comes into force on 7 October. Whilst the maximum reimbursement limit is still up in the air, there is plenty that PSPs can and should be doing as they prepare for implementation. Andrew Tuson, Tegan Schultz and I have written for the Association of Foreign Banks (AFB). https://lnkd.in/gNwZMME2 #APP #fraud #FinancialServices #FinancialRegulation #banking

A terrifying story for both consumers and PSPs in the wake of the new mandatory reimbursement scheme introduced by the Payment Systems Regulator on 7 October 2024... A consumer lost £165,000 to fraudsters, who accessed his account and managed to make 137 transactions in one hour (without the account being blocked). His PSP has refused to reimburse him. If this same set of events took place today, the victim would be reimbursed £85,000, which would be a big bill for the PSP for failing to prevent the fraud (i.e. an incentive to make sure fraud prevention measures are tightened), but still a huge shortfall for the consumer. https://lnkd.in/ekjirdfP #appfraud #psr #paymentsystemsregulator #bankinglitigation #fraud #commerciallitigation #consumerfinance #mandatoryreimbursement #bbc #penningtonsmanchescooper #compliance #banks #psp

Less than 3 weeks to go until the new mandatory reimbursement for APP fraud comes into force on 7 October. Whilst the maximum reimbursement limit is still up in the air, there is plenty that PSPs can and should be doing as they prepare for implementation. Have a read of the article that Andrew Tuson, Samantha Paul and I have written for the Association of Foreign Banks (AFB). #APP #fraud #FinancialServices #FinancialRegulation #banking https://lnkd.in/dGd78Zmf

🔐 The UK's latest Fraud Strategy highlights a pressing need for banks to bolster their defenses against APP fraud, accounting for over 40% of crime. With the impending Financial Services and Markets Bill mandating reimbursement for fraud victims, how prepared is your institution? Our report unpacks the challenges and solutions for banks facing this liability shift. Learn how to secure your operations and customer trust by downloading our comprehensive guide 👉 https://bit.ly/3Toqcq5 #PaymentsPlatform #CloudNative #PaymentFraud #Banking #Payments #FinancialCrime #Fintech #APPFraud