TechnoXander 237 New Labour Govt May Pause APP Reimbursement Policy! 
New Labour Govt May Pause APP Reimbursement Policy! 

The UK's proposed APP fraud reimbursement policy faces industry backlash and potential changes. Labour's victory presents an opportunity for financial institutions to strengthen fraud detection systems.

TechnoXander 168 APP Fraud Reporting
Navigating the Landscape of APP Fraud Reporting Challenges

Amidst the escalating battle against Authorised Push Payment (APP) fraud, a critical focus emerges— the challenges Payment Service Providers (PSPs) face in reporting such incidents. As the 2024 reimbursement requirement looms, effective communication between sending and receiving firms becomes paramount. This blog scrutinises current hurdles in APP fraud reporting, including communication difficulties, inconsistent approaches in defining fraud scope, varying customer outcomes, receiving fraud data discrepancies, and challenges in applying new requirements.

TechnoXander 169 Authorised Push Payment Scams
Transforming Reimbursement Policies for Authorised Push Payment Scams: Current Landscape and Future Strategies

The landscape of reimbursement policies for authorised push payment (APP) scams is undergoing a transformative shift following recent legislative changes in the UK. The Financial Services and Markets Bill, granted Royal Assent in June 2023, empowers the Payment Systems Regulator (PSR) to implement an innovative 50:50 cost-sharing model between banks involved in sending and receiving funds for APP scams. This article reviews the current Contingent Reimbursement Model (CRM) Code, outlines upcoming changes, and provides strategic guidance for banks preparing for this shift.

TechnoXander 171 APP Scams Types
Reporting APP Scams Types- Strategies and Procedures

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.

TechnoXander 162 Unravelling SD20
Unravelling SD20 : Insights for Faster Payments

Specific Direction 20 (SD20), introduced by the Payment Systems Regulator (PSR) in December 2023, outlines a reimbursement mandate for victims of Authorised Push Payment (APP) scams in the Faster Payments Scheme. This directive, effective from October 7, 2024, necessitates full reimbursement from all Payment Service Providers (PSPs). While SD20 aligns with the broader goal of combating financial fraud, challenges arise, particularly for Electronic Money Institutions (EMIs) and smaller PSPs. Proactive risk mitigation, robust fraud prevention measures, and strategic planning are imperative for industry players to navigate the regulatory landscape, fortify resilience, and ensure compliance with SD20.

TechnoXander 165 Strategic Imperatives for Banks
Strategic Imperatives for Banks in Tackling the Dual Challenge of APP Fraud: Sending and Receiving Fraudulent Payments

Payment Systems Regulator (PSR) initiated transformative measures to address the surging threat of Authorised Push Payment (APP) fraud within the UK's faster payments system. This article delves into the complex landscape banks face in sending and receiving fraudulent payments. With APP fraud causing over £480 million in losses to 200,000 consumers in 2022, the PSR's forthcoming rules, effective October 2024, introduce a paradigm shift. The PSR's three-pronged approach focuses on consistent reimbursement, enhanced victim protection, and incentivising proactive fraud prevention. Banks grapple with operational challenges, emphasising the need for collaboration, enhanced capabilities, and adaptability in navigating the evolving regulatory landscape.

TechnoXander 157 Transparency Initiative
Exciting Transparency Initiative – PSR APP fraud performance data!

For the first time, the Payment Systems Regulator (PSR) unveils a ground-breaking transparency initiative, sharing comprehensive data on Authorised Push Payment (APP) fraud. This data allows users to assess their banks' performance in reimbursing victims and handling fraudulent transactions, empowering informed decisions. The report recognises leaders like TSB and Nationwide, praising their commitment to customer protection. It delves into various metrics, revealing trends, challenges, and priorities across different financial institutions, shedding light on the complex landscape of APP fraud in the UK.

TechnoXander 155 Evolution of PSR Regulations
Navigating the Changing Tides: The Evolution of PSR Regulations

In 2023, the Payment System Regulator (PSR) made strides against rising Authorised Push Payment (APP) fraud. The legislation mandated 100% reimbursement, shared between banks. The UK government's three-pillar strategy aimed at pursuing fraudsters, blocking fraud, and empowering individuals. June saw additions to Faster Payment rules and the introduction of Confirmation of Payer. Seeking industry input in August on reimbursement limits showcased PSR's commitment to collaboration. Adjusting timelines to October 2024 reflected responsiveness to industry feedback, emphasising a proactive and adaptable regulatory landscape, and shaping a more secure financial future.