UK PSR Framework Requires Payment Providers to Reimburse Many APP Fraud Victims
Summary
The article outlines the UK PSR’s APP fraud reimbursement framework, including shared costs for sending and receiving payment providers and exceptions for consumer fraud or gross negligence. It discusses implications for fraud prevention and collaboration.
Key points
- The framework described in the article took effect in October 2024 and requires payment service providers to reimburse eligible victims of Authorised Push Payment fraud.
- The article says reimbursement costs are shared equally between the sending and receiving providers.
- Reimbursement does not apply in cases of consumer fraud or gross negligence; a claim excess and reimbursement cap are described as possible features.
- The article argues that reimbursement liability increases providers’ incentive to prevent APP fraud and highlights shared intelligence as one approach.
- ThreatFabric promotes its device intelligence and behavioural biometrics products as tools for identifying suspicious consumer behaviour.
Article Details
- Event Type
- Regulatory changes: the UK Payment Systems Regulator's APP fraud reimbursement framework
- Impact
- From October 2024, payment service providers (PSPs) are required to reimburse victims of Authorised Push Payment fraud, with reimbursement costs shared equally by sending and receiving PSPs. The article says exceptions apply for consumer gross negligence or fraud and notes a possible claim excess and reimbursement cap. The framework is intended to strengthen consumer protection and incentivize earlier fraud prevention.
Vendors
Products
Behavioural BiometricsOur Device Intelligence and Behavioural Biometrics solutions provide visibility into consumer behavioural anomalies, helping PSPs detect fraud early and prevent APP scams before they cause damage.Device IntelligenceOur Device Intelligence and Behavioural Biometrics solutions provide visibility into consumer behavioural anomalies, helping PSPs detect fraud early and prevent APP scams before they cause damage.ZelleIn the United States, the peer-to-peer payment system Zelle is under scrutiny by the Senate due to high fraud rates and inadequate reimbursement policies.
Countries
AustraliaMeanwhile, Australia is establishing a national anti-scams centre and developing new codes of practice for banks to better protect customers from fraud.United StatesIn the United States, the peer-to-peer payment system Zelle is under scrutiny by the Senate due to high fraud rates and inadequate reimbursement policies.