Authorised Push Payment Fraud Performance Report

Baroness Kramer Excerpts

Tuesday 14th November 2023 Lords Chamber

[Baroness Penn (Con)]

As the noble Lord has noted, a significant step towards ensuring greater consistency and user experience will be the mandating of reimbursement; we already have 10 signatories to the voluntary reimbursement code. Of course banks need to have proper processes in place to deal with suspected fraud, and I think publications such as the data we had at the end of last month shine a light on how banks are performing and allow consumers to make informed choices about where they bank.

[Baroness Kramer (LD)]

My Lords, UK Finance has published analysis that shows that 78% of APP fraud originates online and another 18%—especially high value —via telecoms. These companies face no reimbursement liability at all. Will the Government act to change that and make the telecoms and online companies liable?

[Baroness Penn (Con)]

As I have said to noble Lords, through the Online Safety Act, platforms and services in scope will be required to take action to tackle fraud where it is facilitated through user-generated content or via search results. They must take preventive measures to prevent fraudulent content appearing on their platforms and swiftly remove it if it does. Additionally, there will be a duty on the largest social media companies and search engines to prevent fraudulent adverts on their services. Ofcom has the power to fine companies failing their duty of care up to £18 million or 10% of annual global turnover, so there will be accountability in the system for online companies too.