FCA Calls For “robust Frameworks” To Detect Fraud And Support Victims

The UK’s Financial Conduct Authority (FCA) urges firms to enhance anti-fraud systems.
The FCA’s recent review revealed both good and poor practices in addressing fraud, particularly authorized push payment (APP) fraud.
All payment service providers (PSPs) are advised to regularly assess and enhance fraud identification and prevention measures.
The FCA criticizes some firms for “poor complaint handling,” including delayed responses and unclear, confusing letters to fraud victims.
Companies are accused of not fully considering customer vulnerability when deciding on fraud claims and complaints.
According to UK Finance, APP scams caused £239.3 million in losses in the first half of 2023, impacting over 116,000 people, with a potential underreporting rate of 86%.
The FCA emphasizes the need for continuous evaluation of fraud detection frameworks, especially with evolving fraud methods and increasing vulnerability due to cost-of-living pressures.
The FCA collaborates with reviewed firms to strengthen systems and encourages all PSPs to utilize the findings to reduce fraud losses and improve customer treatment, aligning with Consumer Duty.