- 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.
