An implementation date of 7 October 2024 for Authorised Push Payment scam protection, is confirmed by the Payment Systems Regulator.
The Payment Systems Regulator (PSR) is an independent subsidiary of the Financial Conduct Authority (FCA), accountable to Parliament, and is responsible for strong competition and regulatory powers.
Authorised Push Payment (APP) fraud is a significant issue and can have a devastating impact on victims. The PSR is taking a leading role in improving outcomes for consumers by introducing new protections for victims of APP scams, while incentivising industry to implement enhanced fraud prevention tools.
The PSR considered evidence from the industry and FCA about the maximum liability amount. After considering the findings and evidence provided, the PSR is consulting on a new cap. If confirmed, this would bring the cap in line with the Financial Services Compensation Scheme (FSCS) limit which is currently £85,000 and will see over 99% of claims by volume. The previous maximum reimbursement value had been set at £415,000, in line with the Financial Ombudsman maximum reimbursement limit at that time.
The consultation closes on 18 September and the PSR will consider the responses carefully and confirm its final approach before the end of September. However the PSR’s requirements will still come into force on 7 October 2024.
These mandatory reimbursement requirements are part of the PSR’s broader fraud prevention measures, which have also included the mandatory implementation of the name-checking service, Confirmation of Payee, enhanced data sharing between payment firms and increased transparency of payment firms’ fraud performance and reimbursement rates.
For more information:
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For information only to Audit Committees and Boards.
For further discussion and support, including fraud awareness training, contact: Melanie Alflatt, Director – Operations (Anti Crime & IT Audit), Email: fraud@tiaa.co.uk or Contact Us