Watchdog announces new requirements to tackle APP fraud
The UK watchdog for payment systems unveiled new obligations for lenders and payments outfits with a view to helping more victims of Authorised Push Payment fraud to recover their funds.
"In delivering this step-change, the UK will be at the forefront of the fight against APP fraud globally," Payment Systems Regulator managing director, Chris Hemsley, said.
"And by confirming these changes now, it means we will be ready to act once new laws come into effect. We will continue to work with Pay.UK, industry, consumers and organisations beyond the payments sphere to drive effective intervention and start to turn the tide against APP fraud."
According to PSR, APP fraud cost people almost £500m in 2022.
Under its new mandatory reimbursement guidelines, sending and receiving firms would share the costs of reimbursement equally.
And most victims would have to reimbursed within five business days.
Additional protections for vulnerable customers would also be implemented and new rules would be established to boost Pay.Uk's ability to tackle fraud.
The new reimbursement requirement was expected to come into force in 2024.