Banking Risk and Regulation’s Post

With less than 1 month to go until the new regulations go live it is important for firms to take measures to mitigate risk and safeguard their future. #SD20 #FinCrime #InsurTech #APPFraud #RegTech #DigitalFraud

🚨 There is widespread concern about the new UK Fraud Rules from Payment Fintechs and Banks 🚨 BeyondFS partner Matthew Neill is quoted in this in-depth review by Ellesheva Kissin from Banking Risk and Regulation. Drawing on his extensive conversations with industry practitioners, Matt highlights the lack of mandatory adoption for the forthcoming Pay.UK. claims system, warning this could lead to a fragmented approach across the industry. Without clear guidance, day one could result in chaos, as many payment providers might not even use the tool. He also points out that the regulator is not focusing on the need to develop technology to combat fraud, leaving financial institutions to handle disputes bilaterally or through the courts. For those without a subscription here are some other key points from the article: - From October 7, the UK Payment Systems Regulator will enforce new rules requiring banks and payment companies to reimburse victims of authorised push payment (APP) fraud up to £415,000. However, industry insiders warn this could lead to chaos. - Pay.UK, responsible for the claims management system, is believed to be behind schedule. Despite industry pleas for a delay in implementing the rules, the regulator is pushing ahead. - Critics cite a lack of clarity and fear the rules will slow down Faster Payments and increase litigation between financial institutions. - The Labour Party is also suggesting holding tech companies accountable for fraud on their platforms - a move welcomed by some but adding more complexity to an already contentious issue. - As the financial sector braces for impact, concerns mount over London's fintech reputation and the potential fallout – especially acute for smaller providers. Buckle up – the road to October 7 looks bumpy. 🚀 #Fintech #Banking #FraudPrevention #Regulation

Fintechs and banks have blasted a UK regulator’s handling of new incoming fraud rules, warning they will sow “chaos” and slow down instant payments. The Payment Systems Regulator will force banks and payment companies to reimburse fraud victims up to £415,000 from October 7, with costs shared between both the sending and receiving banks. The new rules aim to tackle authorised push payments fraud, an increasingly sophisticated financial crime that tricks victims into sending funds directly to fraudsters’ accounts. According to UK Finance’s Annual Fraud Report, APP fraud cases jumped 12 per cent to 232,429 in 2023. But Pay.UK, the interbank operator building the claims management system most of the industry will have to use, will likely not have it ready by the go-live date, four industry sources tell Banking Risk and Regulation. Story by Ellesheva Kissin. Read more below👇 https://lnkd.in/eKwgaj3y #banking #fraud #APPfraud

The PSR’s latest report covering 2023 includes the UK’s 14 largest banking groups, along with the data for eleven other smaller firms that were in the top 20 highest receivers of fraud. The smaller firms are included as they represent a disproportionately high level of fraud received. With this data, you will be able to see the full extent of how well your bank has performed in tackling APP fraud and how they treated victims in the last year, compared to other UK banks and payment firms. This data covers: - Reimbursement to victims (from the largest 14 banking groups in Great Britain and Northern Ireland) - How much money is sent from victims’ accounts by each payment firm as a result of APP scams (from the largest 14 banking groups in Great Britain and Northern Ireland) - How much money is received into fraudsters’ accounts by each payment firm as a result of APP scams (covering scams sent from accounts held with the 14 largest banking groups in Great Britain and Northern Ireland to any UK payment firm) https://lnkd.in/gsbCc8Ax #payments #fraud #uk #banking

🗣 Simon Eacott, head of payments at NatWest, reveals what the bank is doing to address fraud and what more needs to be done industry-wide. He also offers his thoughts on recent draft legislation issued by the UK government aimed at tackling APP fraud. Read more at the 🔗 Stephanie Melrose #openbanking #fraudprevention #fraud #datasharing #openfinance #payments #financialdata https://lnkd.in/e2DTVxTm

🚨 Complaints about UK banks are at a "10-year high," with fraud concerns rising by a fifth, reports the Financial Ombudsman Service. 📈 Unpublished data provided by the FOS and shared exclusively with Banking Risk and Regulation shows that in the second half of 2023, fintech Revolut topped the list for new fraud and scam complaints by some distance. 2,208 new complaints were filed, up from 1,630 in the first half of the year. 😡 Complaints often involve card payments to investment scams or APP scams, writes Frances Coppola. New legal requirements in 2024 will obligate all financial firms to reimburse scam victims. 🔍 Automated push payment scams dominate these complaints, where customers are tricked into authorising payments to fraudsters. 💡 How can fintechs improve fraud prevention? Will new regulations enhance consumer protection or burden financial firms further? Read more below👇https://lnkd.in/egGYhZPc #FinancialFraud #Fraud #ConsumerProtection

Online banking has made life easier - I dont remember when I had last touched my cheque book But also so much tougher The number of fraud cases in the banking sector increased by nearly 300% in the last two years. Gullible people, young and old, are being ripped off their hard earned money by fraudsters - scammers call their targets, posing as an officer from the Police/Customs. The setting is completely orchestrated - seems these folks even use a studio They inform you that major regulatory violations have happened, and ask for your Aadhar Number, followed by OTPs on your phone, asking to pose on the video call - with your Aadhar in your hand, clearly displaying the number The challenge is that in the heat of the moment, one gets completely scared - and commits mistakes - and these fraudsters keep innovating One key takeway is that maybe you can attach only one bank account of yours for Online Banking with usual transactions- and keep others as just Rs 10,000 or so, so that impact of the loss is minimised And if such an incident has happened, immediately lodge FIR in the nearest police station - so that you have documentary evidence, if something goes wrong later #cyberfrauds #banking

UK fraud case and what do we think We have posted the recent updates from the UK about rising fraud rates for card transactions (https://lnkd.in/dcFnpJK4) and came up with some thoughts about this. The statistics is quite sad - during last three years users have lost almost 60M GBP in card fraud. Fighting this is the top priority for banks and fintech but still there’s a room for a mistake. On the other hand, leveraging open banking technology can greatly help UK residents to save money and safeguard funds from fraudsters. Why is that? Since payment occurs through interbank communication and following client instant approval, there are practically no ways to "intercept" such payment. Meanwhile, cards are less secure because their data can be compromised and used for payments at websites that lack 3DS measure. Many fraud schemes are built precisely on the theft of card data and further search for ways to cash out the funds. What do you think of it? #payments #innovations #fintechnews #igaming

Honored to have contributed some slightly spicy quotes in today's Banking Risk and Regulation (by the Financial Times)! A fantastic piece by Ellesheva Kissin discusses the slowdown in payments as a response to the rise in A.P.P. fraud and new reimbursement regulations. I emphasized that while Confirmation of Payee (CoP) is a great tool for preventing "fat-finger" errors (a non-trivial challenge), it's not a comprehensive fraud solution. Fraudsters often coach consumers to override CoP checks, and customers deserve more protection than just binary name-matching. At Tunic Pay, we're focused on enabling smarter payments, adding the right amount of "good friction," and leveraging intelligent network-level processing to combat fraud more effectively. Thank you, Ellesheva, for the opportunity to share a little of our work. Link to the article:

Authorised Push Payment (APP) fraud is the most common type of financial scam in the UK, costing the economy almost £240 million in the first half of 2023 year alone. It works simply by tricking individuals and businesses into sending money under false pretences which can have a devastating impact. Read our latest case study on how Metro Bank is tackling the #PSR challenge head-on using LexisNexis Risk Solutions to protect customers, fighting fraudsters and saving themselves potential annual reimbursement costs of around £5 million. Get the full story here: https://lnkd.in/edhkn9Vy #APP #FraudProtection