Responding to the publication by the Authorised Push Payment (APP) Steering Group of its draft Voluntary Code for consultation, Stephen Jones, Chief Executive of UK Finance said “The finance industry is committed to ensuring consumers are better protected from the threat of authorised payment scams. Today marks an important milestone in helping us achieve that. Over the last six months, we have been working closely with the consumer groups and the regulator to develop this draft Voluntary Code for consultation setting out clear requirements for consumer protection and the principles for reimbursement. The industry is committed to now continuing work with partners to identify a sustainable funding mechanism through which to reimburse consumers.”

“It is vital that we get the right outcome for customers and prevent the UK from inadvertently becoming a magnet for fraudsters, while ensuring innocent victims and customers are not penalised for the criminal actions of others. It has become clear through our discussions that some of the issues identified must be resolved by new regulation, rather than just a Voluntary Code alone. This will ensure that consumers and financial institutions can be certain in what circumstances victims will be compensated and how this compensation is funded in circumstances where all parties have acted reasonably in making the payment. We are keen to work with regulators and government to put these measures in place as soon as possible.”

“At the same time the industry is fighting fraud on every front, investing millions in security systems, introducing new standards to ensure scam victims get the help they need from their payments provider, supporting law enforcement in disrupting the criminals and assisting the government in improving intelligence sharing.”