Payments Association rails against PSR reimbursement rules for APP fraud

This post was originally published on Finextra (Security)

Decision-makers from payments businesses across the UK have identified Authorised Push Payment (APP) fraud as the top threat to both their businesses and consumers.

This is according to the first findings of an in-depth financial crime survey by The Payments Association, which champions innovation and collaboration across the industry, due for full publication later this month.

APP fraud has emerged as a significant fraud, targeting the public and small businesses. Authorised push payment (APP) fraud losses were £459.7million, down five per cent compared to last year. This comprised £376.4million of personal losses and £83.3million of business losses. This type of fraud involves a fraudster tricking someone into sending money by posing as a legitimate payee. Methods include setting up fake websites for non-existent goods or sending texts or emails pretending to be from banks or even friends and family. Despite the variety of tactics, all APP fraud uses the Authorised Push Payment system that millions legitimately use every day.

The Payment Association’s financial crime survey was distributed to selected decision-makers at major UK payments companies, including many CEOs and founders. The companies represented parts of the industry ranging from Banking and Account providers (18%) and technology providers (21%) to Open

Read the rest of this post, which was originally published on Finextra (Security).

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