Among the UK regulators’ recent output relevant to Authorised Push Payment (APP) fraud, two items warrant particular consideration:
- The Payment Systems Regulator’s (PSR’s) publication of the first set of APP fraud performance data. This data includes percentages of reported APP fraud losses refunded by value and by volume, broken down by Payment Services Provider (PSP), as well as value and volume of APP fraud sent per £ million of transactions.
- The FCA’s review of firms’ fraud controls and complaints handling with a particular focus on APP fraud.
The Supreme Court has handed down its seminal judgment in Philipp v Barclays Bank UK plc  UKSC 25, considering the application of the so-called Quincecare duty to the victim of an “authorised push payment” (APP) fraud. In an APP fraud, the victim is induced by fraudulent means to deliberately authorise their bank to send a payment to a bank account controlled by the fraudster.
On 15 July 2020, shortly after the first anniversary of its assumption of governorship of the Contingent Reimbursement Model (“CRM”) Code, the Lending Standards Board (LSB) launched a consultation which will form the basis of its post-implementation review of the CRM Code. The LSB’s review also extends to its Practitioners Guide (which is made available only to signatories of the CRM Code) and its Information for Customers document. Continue reading