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UK Finance responds to the launch of the Authorised Push Payments Scams Voluntary Code

  • Published date: 28.05.2019

Responding to the launch of the Authorised Push Payment Scams Voluntary Code (the Code), Stephen Jones, Chief Executive of UK Finance, said:

Defending customers from fraud and preventing stolen money from going to criminals is a core priority for the finance industry. The launch of this voluntary Code is a significant moment, bringing a new level of protection from authorised push payment (APP) scams. From today, firms who have signed up to the code have committed to new standards of consumer protection and to reimbursing the victims of these scams, provided the customer has met the standards expected of them.

In situations where both the customer and their payment service provider meet the required standards set out in the Code, a customer of a firm signed up to the Code who falls victim to APP fraud will still receive their money back. To fund this compensation to victims, as an interim arrangement a number of the launch signatories of the Code have established a fund to provide reimbursements from implementation until a new long-term funding arrangement is in place no later than the end of this year. We are working with the regulators and government to establish this mechanism before the end of the year.

Meanwhile the industry continues to invest billions in tackling economic crime and protecting customers – developing sophisticated security technologies, helping law enforcement apprehend the criminals responsible and assisting the government in improving fraud intelligence sharing.

1. The following PSPs have committed to implementing the Code from today:

Payment Service Provider Brands
Barclays Barclays
HSBC HSBC UK
First Direct
M&S Bank
Lloyds Banking Group Lloyds Bank
Halifax
Bank of Scotland
Intelligent Finance
Metro Bank Metro Bank
Nationwide  Nationwide
RBS Royal Bank of Scotland
Natwest
Ulster Bank
Santander Santander
Cahoot 
Cater Allen
Starling Bank Starling Bank

2. The following PSPs have established a fund in order for customers in the ‘no blame’ scenario to be reimbursed from today:

  • Barclays
  • HSBC
  • Lloyds Banking Group
  • Metro
  • Nationwide
  • RBS
  • Santander

Ends
 

Notes to editor

For more information please call the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk

The finance industry is tackling authorised and unauthorised fraud by:

  • Investing in advanced security systems to protect customers, which prevented £1.66 billion of unauthorised fraud in the first half of 2018, equivalent to £2 in every £3 of unauthorised fraud.
  • Delivering the Banking Protocol – a ground-breaking rapid response scheme through which branch staff can alert police and Trading Standards to suspected frauds taking place. The system is now operational in every police force area and in 2018 prevented £38 million in fraud and led to 231 arrests.
  • Sponsoring a specialist police unit, the Dedicated Card and Payment Crime Unit, which tackles the organised criminal groups responsible for financial fraud and scams. In 2018, the Unit prevented £94.5 million of fraud, secured 48 convictions and disrupted 11 organised crime groups.
  • Working with Pay.UK to implement the Mule Insights Tactical Solution (MITS), a new technology that will help track suspicious payments and identify money mule accounts.
  • Working with Pay.UK to implement Confirmation of Payee, an account name checking service for when a payment is being made that will help to prevent authorised push payment scams. The Payment Systems Regulator (PSR) is currently consulting on giving a specific direction requiring the payment service providers in the six largest banking groups in the UK to implement CoP. Its proposed deadlines for introducing CoP are:
    • From 31 December 2019: Directed PSPs must respond to CoP requests.
    • From 31 March 2020: Directed PSPs must send CoP requests and present responses to their customers. 
  • Hosting and part-funding the Government-led programme to reform the system of economic crime information sharing, known in the industry as Suspicious Activity Reports, so that it meets the needs of crime agencies, regulators, consumers and businesses.   

UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation.

  • Published date: 28.05.2019