PSR outlines APP scam reporting process for banks and building societies
The UK’s Payment Systems Regulator (PSR) has outlined the reporting process banks and building societies will have to follow in order to combat authorised push payment (APP) scams.
APP scams occur when a person or business is tricked into sending money to a fraudster posing as a genuine payee.
In November 2021, the PSR consulted on a package of measures to tackle APP scams – the publication of scam data, industry efforts to improve intelligence sharing, and mandatory reimbursement for APP scam victims.
Now, the regulator is consulting on the technical process for the collection of scam data which will reveal how well firms are protecting customers.
In an effort to create more transparency and encourage banks and building societies to do more to tackle APP, the regulator will require firms to provide data that shows the proportion of victims who are left fully or partially out of pocket, as well as the rates of APP scams happening at both sending and receiving banks or building societies.
Kate Fitzgerald, the PSR’s head of policy, says: “As well as giving customers more information to choose which bank or building society they want to use, the publication of this data will encourage banks and building societies to do more to help people.”
The PSR says APP scams are a “major problem” in the UK with more than 95,000 incidents in the first half of 2022, with losses totalling almost £250 million.
The regulator will consult with firms and other stakeholders on the plans until 17 January 2023.