In the unfortunate event of an authorised push payment (APP) scam, swift action is imperative. This article offers guidance on reporting APP scams, emphasising immediate contact with the respective bank for intervention. Strategies and procedures for victims are outlined, urging prompt reporting, even if the bank is not a Contingent Reimbursement Model (CRM) Code signatory. For banks adapting to the changing reimbursement landscape, the article provides strategic guidance, including bolstering data analysis, optimising data utilisation, focusing on transaction intent, investing in customer education, and establishing a comprehensive feedback loop.
Authorised Push Payment (APP) fraud, a pervasive financial threat in the UK, has inflicted a staggering £240 million in losses during the first half of the current year. This sophisticated scam involves manipulating individuals and businesses into making voluntary payments under false pretences. In this comprehensive blog, we explore the intricacies of APP fraud, detailing various types such as impersonation scams, purchase scams, romance scams, investment scams, loan fee scams, and bank transfer scams. Recent data from UK Finance highlights online channels as the source for 77% of APP fraud cases, while cold calling contributes significantly to losses.
In the evolving financial technology landscape, significant changes are occurring in Confirmation of Payee (CoP) services, shifting from the Open Banking system to a new directory by Pay.UK. This transition, aimed at enhancing CoP and overlay services, poses challenges and strategic considerations. Pay.UK's decision to create a new directory simplifies the complex three-agreement structure for Payment Service Providers (PSPs), streamlining contracts to Pay.UK only. The new Pay.UK directory, operational in Spring 2024, mandates PSPs to transition from the Open Banking Directory by a specified date. Financial Organisations are advised to assess business benefits, potential risks, and change management strategies.