The LSB has published a review of the progress that has been made by signatories to the Contingent Reimbursement Model Code (CRM Code) in tackling APP scams.
The LSB concluded that the firms which have signed up to the CRM Code have made progress in:
- placing an increased focus on scam prevention;
- adopting sound governance structures and suitable executive accountability;
- adopting customer transaction analytics to prevent suspicious payments; and
- enhancing digital effective warnings to ensure they are more targeted.
However, the review does identify a number of areas for improvement, including the:
- development of additional safeguards for instances where payments are initiated through face-to-face interactions;
- enhancement of customer communications (particularly to explain the rationale for a reimbursement decision so as to prevent customers from falling for similar scams in the future); and
- the conduct of further work to support vulnerable customers.