Emma RadmoreChris Hemsley has spoken at the Fraud Leaders’ summit. He looked at how the APP fraud reimbursement rules are critical to address the increasing number of frauds that take place through payments that use the FPS. He commented that FPS makes payments quick and convenient and was not designed with fraud prevention in mind. So over time, it has needed to build in protections, first COP and now ultimately the reimbursement scheme.
He commented that of course the ideal situation would be one that prevents fraud arising in the first place, but that it will always be necessary to have safeguards that protect victims when fraud does occur. He explained some of the drivers behind the new rules, including the reasoning for apportioning reimbursement costs between sending and receiving firms – saying the rules will incentivise receiving firms to prevent scammers from opening accounts in the first place and to close suspicious accounts quickly.
He urged firms to prioritise implementation, and to engage in the design and development of the infrastructure that will help exchange information between payment firms.
Finally, he spoke on the uses firms can make of AI, data and analytics to mitigate their exposure to scams.