FCA response to Payment Systems Regulator’s paper on authorised push payment scams
The Financial Conduct
Authority (FCA) has contributed to the Payment Systems Regulator (PSR) paper on
‘Authorised Push Payment Scams' . This follows the Which?
super-complaint regarding safeguards in the market for push payments.
In December 2016, the FCA
committed to identify if there were any firm-specific or sector-wide issues in
the way banks handle authorised push payment scams. The FCA has engaged with a
number of banks to understand their policies and procedures for handling push
payment scams. In general, the FCA found that the procedures for handling
cases of push payment scams are often unclear and not consistently applied, and
there are insufficient data to understand the scale of these scams. The nature
of push payment scams is that they get around banks’ existing systems and
controls to detect fraud, and although banks are working to improve their
ability to detect these kind of scams, some banks have made more progress
than others.
The FCA is therefore
supportive of the industry-led initiatives and welcomes the introduction of UK
Finance’s Best Practice Standards. The FCA sees this as a key initiative
in tackling push payment fraud. The FCA will be actively monitoring the
adoption, implementation and impact of the Standards. The FCA will be writing
to members of UK Finance to ask them:
•
If they have committed to adopt UK Finance’s Standards, how they will
incorporate them into their policies, procedures and target operating model.
•
Whether the Senior Manager with responsibility for the firm’s financial crime
policies and procedures is ensuring that there are adequate measures to address
payment services fraud (including push payment fraud).
Notes to Editors
1. The PSR’s paper refers to payment service providers (PSPs) which we have
referred to using the shorthand ‘banks’.
2. The Payment Systems Regulator (PSR) paper on Authorised Push Payment Scams.
3. Authorised push payment fraud occurs when someone is into tricked into
instructing their bank to transfer money to a fraudster.
4. On 1 April 2013, the FCA became responsible for the
conduct supervision of all regulated financial firms and the prudential
supervision of those not supervised by the Prudential Regulation Authority
(PRA).
5. The FCA has an overarching strategic objective of ensuring the
relevant markets function well. To support this it has three operational
objectives: to secure an appropriate degree of protection for consumers; to
protect and enhance the integrity of the UK financial system; and to promote
effective competition in the interests of consumers.
6. Find out more information about the FCA.
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