The UK’s Lending Standards Board (LSB) has announced updates to the Contingent Reimbursement Model (CRM) Code, a set of voluntary standards designed to protect individuals from authorised push payment (APP) fraud.
Launched in 2019 and managed by the LSB, the CRM Code mandates that participating firms detect, prevent, and respond effectively to APP scams. The signatory firms, which include the nine largest financial institutions in the UK, also commit to reimbursing customers who lose money in instances where they are not at fault.
According to the Board, the three key updates to the Code aim to enhance customer understanding of how firms assess APP scam cases, improve scam prevention efforts, and expand the Code’s applicability to a broader range of firms.
The first update requires banks to provide customers with clear explanations regarding reimbursement decisions. Secondly, all signatory firms are now obligated to implement Confirmation of Payee checks for outbound payments.
The third change modifies provisions within the Code to allow additional firms to join, thereby extending the model’s reach to more institutions and consumers.
Emma Lovell, CEO of the LSB, stated: “Today’s updates will enhance firms’ efforts to prevent scams, ensure a broader range of customers are protected, and foster greater transparency and understanding between firms and their clients.
“The rise and success of scams is an issue that financial services cannot address alone. By the time a payment is made, it may be too late, as victims are often manipulated into proceeding with the scam. We urge social media platforms, telecommunications companies, and utility providers to enhance their intervention efforts at every possible opportunity.”