The Payment Systems Regulator (PSR) has announced its plans that will see around 400 more financial firms provide Confirmation of Payee (CoP).
This essential fraud protection service will increase coverage from 92% of transactions made via Faster Payments (FPS) and CHAPS (when you make a payment transfer from one account to another) to 99% worth approximately £2.5 trillion.
CoP is the name-checking service designed to prevent accidentally misdirected payments and APP scams; one million payments benefit from the checking service every day. In 2019, the PSR directed the UK’s six biggest banking groups to implement the system. Since then, additional non-directed firms have voluntarily implemented the service and there are now 33 financial organisations offering CoP.
The regulator is keen to see more firms providing CoP protection and wants to take further action to achieve that. Earlier this year the PSR directed the transition to a new technical environment which would open the availability of the service to more financial firms.
The PSR wants CoP to be widely implemented by financial firms that send and receive Faster Payments and CHAPS payments and thinks it should be a priority for any firm yet to do so. This is particularly important as there are indications that that some firms yet to implement CoP are seeing an increase of APP fraud.
Genevieve Marjoribanks, Head of Policy at the PSR said “Protecting people who make payments should be a top priority for all financial firms. Those that have not yet introduced Confirmation of Payee need to step up to make sure their customers are protected.”
“All consumers should expect to see Confirmation of Payee checks happening when they make payments, regardless of who they use to make the transfer. That’s why these plans to increase coverage are so important.”