Credit, collections & insolvency news
The Payment Systems Regulator (PSR) has announced that hundreds of additional financial firms will adopt the Confirmation of Payee (CoP) name-checking service, in the industry’s fight against fraud. The expanded rollout means that over 99% of all transactions made through Faster Payments and CHAPS are now safeguarded by this vital anti-fraud measure, offering consumers an important way to protect themselves from fraud.
In the first half of 2024, over £213 million was lost to Authorised Push Payment (APP) fraud, where people are tricked into sending money to fraudsters posing as genuine payees. With CoP now widely in place, consumers can expect name checks to be the norm when sending money to new accounts, helping ensure their payments reach the right person or business. It’s essential that people remain cautious, vigilant, and responsive to warnings from their bank or payment provider when making payments.
CoP is a Pay.UK service, and as the Payment Systems Operator, Pay.UK has created the rules and standards for CoP, supporting industry with its expansion. Mandating this widespread adoption of CoP is part of the PSR’s broader efforts to combat APP fraud. On 7th October, new mandatory reimbursement rules came into effect, making it quicker and simpler for victims of APP fraud to get back money they’ve lost to criminals, with a guaranteed minimum level of protection in place. These rules also incentivise payment firms to innovate and implement stronger fraud prevention methods.
Kate Fitzgerald, Head of Policy at the PSR, said “Confirmation of Payee has quickly become an essential anti-fraud tool. Since its launch in 2020, more than 2.5 billion checks have been completed.
“We’re tackling fraud from multiple angles – ensuring widespread checks and safeguards, implementing strong reputational and financial incentives for industry action, and promoting better data and intelligence sharing. Expanding Confirmation of Payee to more firms is a crucial step in our ongoing work to protect consumers and drive fraud out of the UK’s payment systems.”