The Paypers’ Post

Zelle and Big Banks go to Capitol Hill... Senator Richard Blumenthal (CT) has called for a change to Reg E (Electronic Funds Transfer Act) to include authorized transactions made after a consumer is duped into sending money to a scammer. This took place this past Tuesday during a hearing of the Senate Committee on Homeland Security and Governmental Affairs. How do you feel about this proposed change? Comment below. #zelle #fraud #paymentfraud #payments #TheTreasuryWhisperer

With the UK government recently announcing draft legislation to give banks longer to investigate suspected fraud before they process customer payments, Partner Michael Barnett comments on the liabilities this could create and how banks must carefully navigate this regulation, in Law360.   Follow the link below to read Michael's comments in full.   #APPFraud #BankingLitigation #FinancialFraud

As part of an ongoing effort to protect consumers, the UK government is granting banks new powers to delay and investigate payments suspected of being fraudulent. #72hourfraudinvestigation #bankfraudprevention #banksinvestigatesuspiciouspayments #financialcrimeintheUK #fraudprotectionforconsumers #governmentfraudpreventionstrategy #newbankfraudlaws #paymentdelayfraudprevention #romancescamprevention #scamstargetingvulnerablepeople #thxnews

In response to increasing concerns about fraud, the UK Treasury has introduced new regulations that give banks the authority to postpone suspicious payments for up to 72 hours. This move is a significant step in protecting individuals and businesses from fraudulent activities while also ensuring a careful balance with efficient payment processes. As financial technology continues to advance, it is crucial for institutions to integrate advanced real-time fraud detection systems to enhance security and customer trust. Let's continue working together to protect and empower our community in the digital age. #UK #Payments #APPFraud #FraudPrevention @UKTreasury

The UK’s Payment System regulator (PSR) has mandated regulations starting in October 2024 for all UK based banks. The EU directive comes into force late 2024, early 2025. The main reason is to protect against fraud through name and account verification. There will be fines in place for the organisations that are not complying. Will the financial industry make it in time? #APPfraud #Paymentsystemregulator #finance #banks #compliance #financialregulations

Banks to put four-day hold on suspicious payments. Banks will have the power to pause payments for up to four days to give them more time to investigate fraud, the government has said. Currently, transfers must be processed or declined by the end of the next business day, but the new law will allow an extension of three more days. For years, banks have needed to have reasonable grounds to suspect fraud before being able to investigate but have also faced pressure from customers who want payments to be made instantly. https://lnkd.in/escUPQx4

The Essential Guide To Prepaid Card Money Laundering https://lnkd.in/dGmbfFUR

🐘 Donald Trump’s re-election and the Republican party’s advance in US Congress could stall consumer protections for fraud, warn advocates, who fear a lighter-touch regulatory approach will halt much-needed reform. ⚖️ The Trump-Vance administration could appoint judges less sympathetic to scam victims and also get regulators to adopt a less aggressive approach, experts say. They are also worried Congressional Republicans will focus more on “consumer education” rather than on strengthening existing laws to protect consumers. 📈 This comes as fraud itself is on the rise. The Federal Trade Commission reports that most of the $10bn-plus victims lost to scammers in 2023 — up 14 per cent from the year before — came through crypto or bank transfers. 🇬🇧 While the UK has pushed out legislation to compensate victims, political gridlock in the US and persistent pushback from banks could impede similar efforts, especially with the Republicans close to gaining full control of Congress. 🚨 “That could put more people in harm’s way,” cautions Adam Rust, from the Consumer Federation of America. 📣 He expects a Republican-controlled Congress to tackle fraud primarily through consumer awareness initiatives rather than regulatory reform. Tim Scott is tipped to lead the Senate Banking Committee, a shift that could curtail legislative support for fraud victims. Story by Allison Prang. Read more below. https://lnkd.in/e6TCqM8f #DonaldTrump #Trump

I will be delighted to read and learn from more of these types of articles instead of 100x that number of people (victims) that have lost their life savings to sophisticated scams with the banks doing very little to help prevent or compensate. Yes, #regulation means the pendulum is swinging the other way: this is long overdue. But the impact to individuals and society is going to be significantly smaller after a #liability shift than before. No, I’m not surprised that an industry #lobbying group is attempting to reduce the burden on its members. #AuthorisedPushPayment (#APP) fraud has been under-reported for years. One article regarding a bank doing its best to break the spell of a potential romance scam is anecdotal at best. A sense of proportion is needed when it comes to Type I and II errors. David Geale and Payment Systems Regulator should have the public’s support in this matter. #EconomicCrime #Payments #Fintech

Thanks, David Parker, for sharing your perspective. I understand where you're coming from, but I’m still not entirely comfortable with the approach Monzo took in this instance, or with the notion of balancing risk against reward in this way. I know that banks have a responsibility to protect their customers, but preventing someone from using their own money as they see fit? Even stopping them from withdrawing it and claiming duty of care. That feels a bit too controlling, almost like living under a strict regime where every move is scrutinised. The right balance needs to be found. With all the technology and data available today, there are better ways to ensure customer safety without going to extremes. And it should be in pur intrest to avoid causing loyal customers unnecessary stress by asking for things like tax returns or making them prove personal relationships.