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.