The Payment Systems Regulator (PSR)
confirms the arrangements for publishing data on APP scam
performance, which will, for the first time, show how well
payment firms are handling APP scams.
This is a crucial step towards greater
transparency of performance of firms in the fight against fraud.
Firms across the whole payments industry, including banks,
building societies and other payment firms like e-money
institutions – on both the sending and receiving end of a payment
– will be accountable for their performance and encouraged to do
more to prevent fraud and look after
victims.
This action will also importantly put
more power in the hands of the customer, as they will be able to
see how well they’ll be protected by their bank or building
society if they’re scammed. This will see a significant step up
in the information customers have available to them when choosing
who to bank with.
To achieve this, the PSR is directing
14 of the largest UK payment service provider (PSP) groups to
collect and provide data to the regulator which will cover 95% of
transactions.
The reporting requirement will see the
following data being published:
-
the proportion of victims of APP
scams who do not get reimbursed
-
the rates of APP scams happening at
sending payment firms
-
the rates of APP scams happening at
receiving payment firms
The first set of
data will be published in
October on the PSR website.
Kate Fitzgerald, Head of Policy at the
PSR, said:
“This is a major step forward in
tackling APP scams. This requirement will provide a new and
unprecedented level of transparency to consumers on which payment
firms have the highest levels of scams and how well each firm is
looking after victims. Firms across the fraud journey – from
where the transaction is initiated to where it is being received
by the fraudster – will also be incentivised to raise their game
and do more to detect and prevent APP scams in the first
place.
“Making sure people and businesses
are protected when using payment systems is one of our strategic
priorities and this measure is just one of a number of important
steps we’re taking to prevent APP fraud and ensure money is
returned to victims.”
In addition to the improved
transparency, this data will also help to spot systemic issues
within particular firms.
What happens
next?
The 14 directed groups will be
required to provide the PSR with the first set of data by May
2023. The regulator then expects to publish this data in October
2023, and on a six-monthly basis thereafter. This requirement may
adapt over time to reflect new changes or data that should be
presented.
ENDS.
Notes:
-
Today’s publication includes a
policy statement, specific direction, reporting guidance and
data collection templates, which can all be found on this
page.
-
The 14 PSP groups subject to this
direction are: AIB, Barclays, HSBC, Lloyds, Metro Bank plc,
Monzo Bank Limited, NatWest group, Nationwide Building Society,
Northern Bank Limited, Santander UK plc, Starling Bank Limited,
the Co-operative Bank, TSB Bank pc and Virgin Money UK plc.
-
The data that will be published by
the PSR in October will be aggregated – meaning it will be
presented on a banking group basis (for example, Lloyds Banking
Group’s data will include Lloyds Bank, Halifax, and Bank of
Scotland).
-
The PSR is driving forward a package
of financial and reputational incentive measures to tackle APP
scams – these focus on the publication of scam data, industry
efforts to improve intelligence sharing, and greater consumer
protections for APP scam victims. The PSR will be able to
direct firms to reimburse customers once parliament has granted
it the right powers through the Financial Services and Markets
Bill. This Bill is still making its way through
parliament.
-
In August 2019, the PSR
directed members of the UK’s 6 largest banking groups to
implement Confirmation of Payee which now covers 99% of
payments made from one bank account to another.
