The Payment Systems Regulator’s (PSR) decision to introduce mandatory reimbursement for customers who fall victim to Authorised Push Payment (APP) scams is a welcome one. As we continue to face the challenges of rising inflation and costly living, it’s important that customers are protected and feel confident in using financial services. In addition to reimbursement there is an ongoing need for measures to protect customers whilst simultaneously preventing criminals from using financial services for fraudulent activities.
The CRM Code is currently the only form of protection for customers which specifically addresses the prevention and detection of APP scams. Introducing an independent standards framework for firms, that captures these conduct elements of the CRM code, will be essential to the ongoing protection of customers, even once the PSR has introduced new requirements on reimbursement.
Maintaining an industry code would ensure firms continue to demonstrate their commitment and consistent application of safeguards to intervene fraud at the helm.
Emma Lovell, LSB Chief Executive commented: “Evidence shows that scams cause long lasting impacts on victims, including deteriorating mental health, along with losing trust in others.
We have long said that the focus across industries must be on stopping scams; this is the only way to truly protect customers, and reinforces the need to maintain an industry code that has a focus on prevention.
The LSB will now take this forward with support from key industry stakeholders and signatory financial services firms who want to offer their customers the best protections.”
We are committed to working closely with the PSR, Pay.UK, firms, and stakeholders to ensure consumer protection through mandatory reimbursement and the oversight of an evolved industry code focussed on scam prevention and detection.