Push payment scams are a growing form of financial fraud. The industry, financial regulators and the police are working together to try to reduce its impact. This note outlines some current initiatives.Jump to full report >>
Amidst all the advantages of electronic banking for customers, the undoubted drawback ’ is the prevalence of online fraud, especially authorised push payment (APP) scams.
The banking industry has a broad regulatory requirement to provide a safe banking environment and it is keen to help customers stop getting into trouble in the first place and do what it can to help if they have already fallen foul.
In terms of preventative measures, there is a widely advertised ‘Take Five’ campaign to encourage people to be sceptical about requests for them to send their bank details to unknown people or to change previously agreed payment details at the last minute.
In the process of being drawn up is a system of recompense for customers who have been subject to fraud. This will be available later in 2018.
Customers are encouraged to contact Action Fraud and or the police if they think they have been defrauded. In limited circumstances victims might be able to go to the Financial Ombudsman if the bank has been negligent. The Financial Conduct Authority proposes to extend the remit of the Ombudsman to include such scams.
Commons Briefing papers CBP-8350
Author: Tim Edmonds