Keith McGill, Head of ID & Fraud at Equifax UK, comments on the new FCA rules on handling complaints of Authorised Push Payment fraud coming into force tomorrow:
“The new rules show the FCA’s commitment to accelerate change across the financial services industry to help protect consumers against fraud. Authorised Push Payment 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. These new rules will directly benefit consumers falling victim to this type of fraud by giving them stronger redress with the recipient bank or building society being used by the fraudster, in addition to their own.
“In parallel, the Payment Systems Regulator is introducing a new code for payment providers in 2019, including a duty of care and minimum standards they must meet. Confirming the name on the account that funds are being paid to will be part of this code, also known as ‘confirmation of payee’. Payment providers are working hard to deploy solutions to meet the new code, and ensure they play their part in mitigating Push Payment fraud.
“Fraud persists in many forms as a widespread problem, and while consumers must safeguard themselves by remaining vigilant and sensible about the actions they’re taking, these new rules are good examples of how the industry can work together to develop lasting solutions. This industry collaboration is key to tackling fraud and improving outcomes for consumers and businesses alike.”