Responding to the Lending Standards Board's (LSB) summary report on the Contingent Reimbursement Model (CRM) code for APP scams, Katy Worobec, Managing Director of Economic Crime at UK Finance, said:

?The banking and payments industry is wholly committed to defending its customers from authorised push payment (APP) fraud and stopping stolen money going to criminals. The APP Code, developed on a voluntary basis by firms together with consumer groups, has established stronger customer protection standards and has more than doubled the proportion of losses being refunded. However, any customer who is unhappy with the outcome of a case can of course take their complaint to the Financial Ombudsman Service.

?Since its introduction last May, signatory firms have been working hard to ensure they deliver their commitments under the Code and are continually improving as their experience grows. The role of the Lending Standards Board in identifying good practices and helping to ensure consistency across the industry is welcomed, and this report provides an important resource for firms.

?With criminals seeking to take advantage of the Covid-19 outbreak, it remains vital that customers follow the advice of the Take Five to Stop Fraud campaign and stop and think before they ever part with their money or information.?

Background

1. Reimbursement has significantly increased in all types of APP scam since the introduction of the Code.

2. Signatory firms are continuously assessing the fraud landscape to ensure that warning messages are relevant to the most current scam trends, sharing best practice to identify the most effective means of delivering messages within the payment journey.

3. The Code uses a dynamic definition of vulnerability, relevant to the specific type of APP fraud and the situation of the victim at the time of authorising the payment. Firms are working to ensure that operational staff are equipped with the necessary skills to enable them to have a conversation with the customer at the point of reporting their scam claim. While vulnerability is unique to each customer, we anticipate that as signatories? operational teams become more experienced in conducting these conversations, customers individual vulnerabilities will be considered more consistently within the overall assessment.

4. As stated in the LSB report, all banks are dealing with customers compassionately and sensitively when the crime is reported. Members are refreshing colleague training to ensure that the customers evidence is logged effectively to ensure that all elements of the Code are considered when completing the liability assessments.

5. As UK Finance has previously said a voluntary agreement alone is not enough and issues of liability and reimbursement would best be addressed by new legislation. Both the government and regulators must also consider how customer data breaches and vulnerabilities in other sectors such as telecoms and social media are facilitating fraud, as part of a holistic strategy to protect consumers from harm.

6. The banking industry is protecting the public from fraud by:

• Helping customers stay safe from fraud and spot the signs of a scam through the Take Five to Stop Fraud campaign. This includes providing the latest advice on how the public can protect themselves from Covid-19 related scam phone calls, emails, text messages or social media posts.
• Working closely with the government and law enforcement to tackle fraud through a national Economic Crime Plan, including regularly exchanging information and coordinating responses to emerging threats such as scams linked to Covid-19.
• Sharing all relevant information on fraud cases with law enforcement via the police's National Fraud Intelligence Bureau while also hosting and part-funding the government-led programme to reform the system of economic crime information sharing.
• Fully funding a specialist police unit, the Dedicated Card and Payment Crime Unit (DCPCU), which tackles the organised criminal groups responsible for financial fraud and scams. In 2019, the unit prevented an estimated £31 million of fraud, secured 75 convictions and disrupted 23 organised crime groups. The unit is currently cracking down on criminals gangs involved in Covid-19 related scams, with three search warrants executed across the country in recent weeks.
• Working with mobile phone providers to block scam text messages including those exploiting the Covid-19 crisis. 400 unauthorised sender IDs are being blocked to prevent them being used to send scam text messages mimicking trusted organisations, including 70 related to Covid-19.
• Investing in advanced security systems to protect customers from fraud, including real-time analysis to spot suspicious transactions. UK Finance's latest figures reveal the banking industry prevented more than £1.8 billion of unauthorised fraud last year, or almost £5 million a day (UK Finance: Fraud the Facts).

7. UK Finance is urging the public and businesses to follow the advice of the Take Five to Stop Fraud campaign and remember criminals are experts at impersonating people, organisations and the police. They spend hours researching you hoping you?ll let your guard down for just a moment. If you are approached unexpectedly remember to:

• Stop: Taking a moment to think before parting with your money or information could keep you safe.
• Challenge: Could it be fake? It's ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
• Protect: Contact your bank immediately if you think you?ve fallen victim to a scam and report it to Action Fraud.