As the financial sector marks International Fraud Awareness Week, the UK’s Payment Systems Regulator (PSR) has released new data highlighting the significant impact of its fraud prevention measures, specifically the Confirmation of Payee (CoP) service. The regulator’s latest figures suggest that the UK’s proactive approach to payment security is not only safeguarding domestic consumers but is also setting a blueprint for international markets including Australia and the EU.
Since its introduction in 2019, CoP has evolved from a novel security feature to a fundamental component of the UK’s payments infrastructure. Designed to prevent misdirected payments and authorised push payment (APP) fraud by checking that the account name matches the account details, the service has seen exceptional uptake.
According to the PSR’s latest report, over 320 organisations now offer CoP checks. Crucially, the regulator has successfully extended the service to cover more than 99 per cent of all transactions made via Faster Payments. With over two million name-checks now completed daily, the initiative has effectively achieved the PSR’s goal of becoming an everyday part of the consumer payment experience.
A Global Blueprint for Security
The success of the UK’s model has not gone unnoticed on the global stage. The PSR revealed that international counterparts have been closely monitoring the efficacy of CoP. Consequently, both Australia and the European Union are currently working on similar name-checking systems, rolling out their own versions to enhance consumer protection based on the UK’s established framework.
David Geale, managing director at the PSR, commented on the international adoption: “Confirmation of Payee has been a significant success story in preventing fraud and was one of the key pillars of our strategy to tackle Authorised Push Payment scams. We’re pleased to see that the success of this tool has inspired other countries to take bold steps, and we are seeing them design and develop similar services to offer consumers.”
Reimbursement and restoring trust
While CoP acts as the first line of defence, the PSR has also focused on the aftermath of fraud. Following the expansion of CoP, the regulator introduced the mandatory APP reimbursement requirement on 7 October 2024. The latest figures from the PSR dashboard, covering the first nine months of this policy, paint a picture of a system that is delivering for victims.
A total of £112million has been reimbursed to victims during this period. The efficiency of the claims process has also improved, with 97 per cent of claims resolved within 35 days, and a staggering 84 per cent resolved within just five business days. Perhaps most significantly, the data indicates that overall claim volumes are down, suggesting that firms are stepping up their preventative measures in response to the new liability requirements.
The PSR’s latest survey delves into the psychological and behavioural impact of these measures. It found that 50 per cent of victims who were reimbursed reported trusting their bank more after the experience. In contrast, those who were not reimbursed were significantly more likely to feel hesitant about shopping with unfamiliar retailers, with 31 per cent of victims reporting that they buy less overall since experiencing fraud.
The road ahead
Despite these successes, the PSR acknowledges that the fight against fraud is ongoing. A significant proportion of consumers (43 per cent) are taking the initiative to set up additional security features post-fraud, highlighting a heightened state of vigilance among the public.
“We are committed to ensuring that payment systems work well for consumers and businesses,” Geale continued. “The findings from our survey show that whilst fraud continues to impact victims, both confirmation of payee and our reimbursement requirement continue to have a positive impact for consumers.”
To ensure these measures remain effective, the PSR has commissioned an independent evaluation of its APP fraud policies to assess their long-term impact and identify areas for further improvement.
As the industry reflects on these findings during International Fraud Awareness Week, the message for consumers remains one of vigilance. The regulator continues to urge the public to use the ‘Stop Scams 159’ initiative and to remain sceptical of unsolicited requests for money, reinforcing that while technology like CoP provides a safety net, awareness remains a vital tool in the ecosystem.
