Chris Hemsley has spoken of PSR’s role in regulating all UK payment systems and the importance of collaboration in tackling fraud. His speech focussed on APP fraud, noting the significant problem it poses and quoting 2021 figures of 200,000 incidents and gross losses of £600m. He highlighted some recent defining moments such as requiring all relevant payment firms to roll out COP and getting the Government’s support to giving the PSR greater powers (which it could not have under EU laws). In anticipation of the changes, PSR is already looking at measures to address APP scams in Faster Payments, which is where 98% of scams happen. He said that unsurprisingly there has been mixed reaction to the proposals, but agreement that action is needed.
He also noted the wider package of measures to protect customers and the need to take action right across the fraud journey. He said more work can be done looking at the source of the fraud (specifically the risks of social media platforms), making sure payment firms can manage fraud risks appropriately and proportionately (which may involve introducing some extra friction in payments to allow for time to investigate), better customer information which will empower them to make good decisions and of course effective enforcement.
He said we are now seeing better intelligence sharing among firms, and that work is also ongoing between regulators. What we now need is more collaboration between the public and private sectors, which will include all parties having clear incentives to act.