UK APP Fraud: Timeline of Events
2019
Introduction of Confirmation of Payee (CoP)
Designed to reduce fraud and misdirected payments, CoP is a name checking service that allows a payer to verify that the name for a new payee is the same as the account name and type held by the payee’s payment service provider. The expansion of the CoP is part of the PSR’s multi-pronged approach to fighting APP fraud.
May 2019
Voluntary Contingent Reimbursement Model (CRM) Code
The CRM Code sets out standards for signatory PSPs, with the aim to reduce the occurrence and impact of APP scams. There are currently ten signatories to the Code.
May 2023
Announcement of plans to legislate to reimburse fraud victims
The Treasury announces its intention to legislate to allow the PSR to require victim reimbursement for APP scams.
June 2023
PSR confirms new requirements for APP fraud reimbursement
Following the Financial Services and Markets Bill receiving royal assent, the PSR announces that as of 2024, all PSPs will be required to fully reimburse victims of APP fraud within five business days, with some exceptions.
July 2023
Consultation for APP fraud reimbursement
Consultations on details of the scheme including draft legal instruments, maximum level of reimbursement, claim excess value, and customer standard of caution (i.e. gross negligence).