Equifax welcomes new Authorised Push Payment reimbursement code
Keith McGill, Head of ID & Fraud at Equifax UK, comments on the new voluntary reimbursement code from the Authorised Push Payment (APP) Scams Steering Group coming into force today:
“Authorised Push Payment (APP) fraud, where victims are tricked into transferring funds into accounts controlled by fraudsters, has been a growing issue, with losses of over £145m* in the first half of 2018 alone. The new voluntary code for payment providers coming into force today demonstrates the industry commitment to tackling this type of scam. The code supports rules introduced by the FCA earlier this year, which give consumers stronger redress with the recipient bank or building society being used by the fraudster, in addition to their own.
“The code, which outlines a ‘contingent reimbursement model’ for customers when banks and payment providers fail to meet minimum standards such as confirming the name on the account that funds are being paid into, is a positive step forward from those involved and we hope it continues to attract more members. Importantly, it also specifies a certain level of care that needs to be taken by consumers, encouraging people to remain vigilant and take sensible precautions so that businesses aren’t left to shoulder the burden of tackling fraud alone.
“Payment providers have been working hard to deploy solutions to meet the new code and play their part in mitigating APP fraud, and it is vital that these efforts continue. This new code is a good example of how the industry can work together to develop lasting solutions to address fraud and improve outcomes for consumers and businesses alike.”
*UK Finance ‘2018 Half Year Fraud Update’ report published September 2018