Question to the HM Treasury:

To ask the Chancellor of the Exchequer, in the context of plans to introduce a mandatory reimbursement framework for cases of authorised push payment fraud, what steps his Department has taken to assess the potential merits of requiring (a) online platforms and (b) telecoms companies to implement increased fraud prevention measures alongside introducing that framework.

The Government recognises the growing threat posed to consumers by Authorised Push Payment (APP) fraud, with increasingly sophisticated scams that can be detrimental to people’s lives.

That is why the Government has introduced legislation as part of the Financial Services & Markets Bill to enable the Payment Systems Regulator to require payment service providers (including banks) to reimburse APP scam victims, and placed a duty on the PSR to act in relation to the Faster Payments system (over which vast majority of APP scams currently occur) within 6 months of the legislation coming into force. Following Royal Assent, the PSR will have the powers to deliver an effective reimbursement requirement, and the Government believes this will ensure more consistent and comprehensive reimbursement for APP scam victims.

In its recent consultation on mandatory APP scam reimbursement, the PSR has proposed requiring all banks and other payment service providers sending payments over the Faster Payments system to reimburse APP scam victims, including requiring that vulnerable customers are reimbursed without exception. The Government looks forward to hearing the outcomes of this consultation.

It is right that all industries at risk of facilitating fraud should be prioritising protecting their customers, and the Government is taking steps to ensure that is the case, including through the Online Safety Bill. We will continue to monitor cross-sector efforts to mitigate fraud and protect customers, and will ensure that those sectors which give rise to fraud risk make a meaningful contribution to the reduction of fraud in the UK, including through the forthcoming Fraud Strategy.