Bank Services: Fraud

Treasury written question – answered on 28th November 2018.

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Photo of James Cartlidge James Cartlidge Conservative, South Suffolk

To ask the Chancellor of the Exchequer, what steps his Department is taking to tackle online scams which rely on the individual voluntarily transferring money.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

The Government recognises that fraudulent transactions of this manner, commonly known as Authorised Push Payment (APP) scams, can significantly impact those affected.

In 2015, the Government set up the Payment Systems Regulator (PSR) with a statutory objective to, among other things, ensure that payment systems are operated in a way that takes account of users’ needs. The PSR is addressing these kinds of scams as part of a programme of work announced in December 2016, following a Which? Super-complaint on the issue.

In April 2018, the PSR established a steering group of consumer representatives and banks to draft an industry code to help protect consumers against these kinds of scam. The code was published for consultation in September 2018, with the intention for the final code to be in place in 2019. The aim of this code is to reduce the incidence of APP scams, and it will set out rules on how industry should reimburse consumers in certain scenarios.

It is right that industry takes the necessary steps to protect consumers against this kind of fraud. The Government supports the work the PSR is driving forward to tackle these kinds of scams in conjunction with industry, consumer groups and other regulatory and government bodies.

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