FCA to require PSPs assist victims of authorised push payment fraud

APP fraud is where a fraudster tricks a consumer or business to instruct their payment services provider (PSP), such as their bank, to send money from their account to an account controlled by the fraudster. This type of fraud impacts especially home buyers who believe they are moving their deposit to their solicitor but are inadvertently passing their money to a fraudster.

In 2017, UK Finance data show there were 43,875 cases of APP fraud and total losses of GBP 236 million.

Currently, where the victim’s PSP is not at fault of APP fraud, the victim cannot complain to the PSP receiving their payment. However, the regulator wants companies to handle these complaints in line with complaints handling rules in the FCA Handbook.

In addition victims should be allowed to refer these complaints to the Financial Ombudsman Service if they are unhappy with the outcome reached by the receiving PSP; or if they have not received a response to the complaint at all.

Later in 2018, the FCA will consult on PSPs collecting data on complaints about alleged APP fraud. This data can be used by the industry as an indicator of progress on APP fraud and to inform FCA supervisory work.