The UK’s banks will soon be required to provide transparent data on their effectiveness in protecting customers against authorized push payment (APP) fraud, according to new regulations established by the Payment Systems Regulator (PSR).
APP scams are a significant issue in the UK; in the first half of this year alone, over 95,000 incidents were reported, resulting in losses nearing £250 million. To address this challenge, the PSR proposed a set of measures back in November 2021 aimed at combating APP scams. These measures included the publication of scam data, enhancing industry intelligence sharing, and ensuring mandatory reimbursement for victims of APP scams.
Recently, the PSR has initiated a consultation process regarding the technical aspects of collecting scam data. This will provide a clearer picture of how well financial institutions are safeguarding their customers.
The data that banks and building societies will be expected to submit includes the percentage of victims who are left entirely or partially out of pocket, as well as the rates of APP scams occurring at both sending and receiving institutions.
Kate Fitzgerald, head of policy at the PSR, emphasizes that making this data public will significantly enhance customer understanding of how effectively their bank or building society is addressing scams and compensating victims.
“Banks and building societies should be transparent not only about how many of their customers have fallen victim to an APP scam but also about how they have treated those individuals,” she states. “By providing customers with more information to inform their choices about which bank or building society to use, the publication of this data will also motivate these institutions to take greater action in assisting their clients.”