A drastic surge in APP (Authorised Push Payment) scams took over the world with a storm during the pandemic. The fraudsters searched for innovative ways to target people and attack their banks and financial institutions for APP fraud. Worldwide lockdown increased digital payment transactions, which worsened the situation irrespective of innumerable security steps integrated by the finance industry.
According to UK Finance, millions of pounds are lost to APP scams, with numbers increasing continually; this has become a severe problem for the finance sector. More than 90% of the respondents in a survey stated that APP scams are the highest priority amongst fraud prevention activities for 2022. 43% of the surveyed people stated that using CoP has reduced APP scams.
It cannot be overlooked that fraudsters put painstaking effort into APP fraud. The customer is duped into authorising payments into a fraudulent bank account. People’s personal information is targeted who are further convinced to authorise transactions.
To solve the above challenges, the Confirmation of Payee (CoP) service was launched in March 2020, with SD10 banks, Payment Systems Regulator (PSR), and Payment Service Providers (PSPs) implementing, securing, and fastening the payment processes in the UK by 90%.
Banks now initiate the Confirmation of Payee checks in large volumes, averaging 1 million daily.
Understanding the situation’s urgency, Technoxander emerged as a ground-breaking leader in filling this gap in the market. Technoxander’s Confirmation of Payee (CoP) is an ultimate solution with an intelligent account checking service that assures UK payers that payments are paid to the intended recipient.
Confirmation of Payee (CoP) service benefits both personal and business clients. The service offered is real-time and is a quick and easy method of checking if the payee’s name for the Sort Code and Account Number matches the account holder’s name at the payee bank.
The CoP service works for payments initiated by banks and building societies. The service complies with Pay.UK requirements and can be implemented as a SaaS or Native solution.
It is imperative to consider that although CoP is the new tool used by several banks and financial institutions, adding this multi-layer approach will significantly remove the impending danger. Banks can personalise and customise communication with customers who encounter APP fraud scenarios. CoP matching names is one step towards reducing fraudulent cases and is doing so on a global platform.
To learn how to increase security from APP fraud, contact Technoxander to resolve doubts and queries. Our expert and prompt team will be happy to assist you.
