According to a report by UK Finance, the amount lost to fraud in 2022 amounted to over £1.2 billion, which marked an eight percent decrease from the previous year. Within this total, unauthorised fraud losses accounted for £726.9 million, experiencing a decrease of less than one percent, while APP (Authorised Push Payment) fraud losses amounted to £485.2 million, showing a reduction of 17 percent. Measures like Strong Customer Authentication (SCA) and Confirmation of Payee have had a positive effect on numbers.
Confirmation of payee (CoP) was designed to combat APP fraud and PSPs who have implemented CoP have seen APP fraud losses drop to a large extent.
Beyond compliance, CoP is a strategic imperative, revolutionising how banking transactions are conducted and paving the way for a new era of secure, efficient, and trustworthy financial interactions by combatting APP Fraud.
What is Confirmation of Payee?
Confirmation of Payee (CoP) is a secure method for name verification and checks if the payee’s name and account details match the records at their bank, ensuring your payments are safe and go to the correct account. CoP is also able to validate if the payee account is personal or corporate in addition to other parameters such as whether the account has been switched.
Building Trust in Transactions: Confirmation of Payee (CoP) isn’t just a name-verification process; it’s a trust-building exercise. By prioritising name-verification and enhancing security, Confirmation of Payee (CoP) becomes the cornerstone of reliability, instilling user confidence and reducing errors in the digital payment landscape. PSPs benefit as customers trust them over other financial institutions who have not implemented Confirmation of Payee.
Safeguarding Against Fraud: The threat of fraud, especially in the form of APP fraud, looms large, Confirmation of Payee actively prevent fraudulent activities, illuminating its effectiveness in safeguarding both financial institutions and their clientele. The numbers from last few years are clear evidence that CoP works really well for combatting APP Fraud. PSPs with CoP benefit with minimal losses due to APP fraud transactions.
Navigating Regulatory Frameworks: In a landscape of evolving regulations, CoP aligns well with the expectations from Home Office, Fraud Investigation agencies and regulator. Dive into its adaptability, positioning PSPs as proactive stewards of digital payment security. While CoP is mandates for 400+ institutions with an implementation date of 31st October 2024, PSPs can stay ahead of mandates, and witness how CoP becomes an asset in regulatory navigation.
Operational Excellence Through CoP: Efficiency gains are the unsung heroes of CoP implementation, streamlining processes and offering more than just compliance. CoP is a pathway to operational excellence saving time spent by banking operations in investigating misdirected payments or dealing with fraud losses. PSP’s must delve into customer-centric benefits for smoother banking transactions and heightened satisfaction but cannot forget the operational efficiencies.
Confirmation of Payee (CoP) is a revolution in payments. In the dynamic world of digital transactions, CoP emerges as a strategic imperative for Payment Service Providers. Join the revolution, redefine your approach to secure financial transactions, and lead the way in shaping the future of trusted digital payments with CoP. Connect us with at TechnoXander to understand the most effective and seamless ways to implement CoP.
