UK banks will now have additional time to reach out to customers or local authorities if they suspect a customer has fallen victim to a scam. Regulators in the region are granting banks an extra three days to investigate potential authorized push payment fraud.
With an increasing number of scams reported by UK banks in recent years, the government is taking proactive measures. In 2022 alone, scam victims in the UK lost £485 million, according to the finance ministry.
In a prepared statement, Ben Donaldson, UK Finance’s Managing Director of Economic Crime, emphasized the importance of this extension:
“This could allow payment service providers time to get in touch with customers and give them the advice and support they need to avoid being coerced by the criminals who want to steal their money.”
Protecting Fraud Victims
The UK has been taking steps to counter the surge in APP fraud. Last year, Britain’s Payment Systems Regulator announced mandatory reimbursement for victims of online bank fraud within five days, responding to a significant number of individuals falling prey to fake online bank transactions and suffering considerable financial losses.
However, it’s not only APP fraud that’s been causing concern and challenges for banks. Sophisticated fraud techniques, including deepfakes, have also emerged, presenting new hurdles for UK banks. As emerging technologies advance, so do fraud tactics. A recent report from Sumsub revealed a 300% increase in deepfake incidents in the UK from 2022 to 2023.
What this shows is that banks must implement necessary measures to safeguard their customers’ personal information and funds and adapt to the evolving landscape of fraud tactics. This entails not only strengthening cybersecurity measures, but also investing in advanced fraud detection technologies capable of identifying and mitigating emerging threats in real-time.
