The UK’s Lending Standards Board is pursuing a harder line on authorised push payment fraud, requiring banks receiving scam payments to take further measures to stop such transfers.
Emma Lovell, chief executive of the LSB, says: “Strengthening the Code’s provisions means putting in place another tripwire for fraudsters looking to steal people’s savings – not to mention the money needed for essential living costs.”
The CRM Code, launched in 2019, requires banks to reimburse customers who lose money through no fault of their own. The Payments Systems Regulator (PSR) is currently consulting on a proposal for mandatory reimbursement for victims of scams where more than £100 is stolen.
Says Lovell: “Reimbursement can repair the financial impact on the victim, but it is still very much a lose, lose outcome. Victims lose because they will feel the after-effects and trauma of being scammed even after reimbursement and society loses as organised criminals reap the rewards of theft.
“Scammers aren’t slowing down, and so we cannot take our eye off the ball. Only by stopping scams can customers truly be protected. Maintaining an industry code focused on preventing and detecting scams ensures firms have the tools to stop more scams and demonstrates their commitment to good customer outcomes and protections.”