Electronic Funds Transfer: Fraud

(asked on 24th February 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what discussions they have had with the Payment Systems Regulator regarding the need to introduce mandatory protections for victims of authorised push payment scams.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 10th March 2021

The Government is committed to tackling fraud and ensuring that victims of Authorised Push Payment (APP) scams are protected.

The Government recognises the work industry has undertaken to date, including the introduction of a voluntary reimbursement Code, which has demonstrably had a beneficial impact. However, the Code, whilst improving matters, comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well as its lack of comprehensive cover across providers.

The Government therefore welcomed the publication of the Payment Systems Regulator’s (PSR) call for views on APP scams in February 2021, which set out various measures that could improve customer outcomes. The Government is of the view that the introduction of Faster Payments Service rules setting reimbursement requirements on all scheme participants is the best possible solution to the issue of APP scams; this will ensure the rules underpinning Faster Payments are fit for purpose.

The Government looks forward to engaging with the outcomes of the PSR's call for views, including considering what further actions may be necessary to make progress on this issue.

The Government continues to engage closely with the PSR on this issue.

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