On 8 December 2022, the Payment Systems Regulator (PSR) published a Consultation Paper: Authorised push payment scams measure 1 Metric C process: revised approach.
In November 2021, the PSR consulted on a package of measures to tackle authorised push payment (APP) scams. The measures focussed on the publication of scam data, industry efforts to improve intelligence sharing, and mandatory reimbursement for APP scam victims. In September 2022, the PSR issued a consultation around mandatory reimbursement for APP scam victims. In relation to the publication of scam data the PSR will require the 14 largest payment service provider groups to provide six-monthly data on APP scam performance. The PSR consulted on three metrics for this measure which sought to improve the level of reimbursement for victims of APP scams and encourage payment service providers (PSPs) to improve fraud measures by placing reputational incentives on both sending and receiving PSPs. One of these metrics (Metric C) concerned receiving PSPs’ APP scam rates, net of recoveries. However, the PSR’s engagement with industry has highlighted challenges particularly for this metric around the validation of data between sending and receiving PSPs. In light of this the PSR feels that before issuing the final policy statement it should reconsult specifically on the process for collecting and validating PSPs’ APP scam receiving rates.
In this latest consultation paper the PSR proposes that:
- The 14 directed sending PSPs submit Metric C data on receiving PSPs to the PSR.
- Receiving PSPs will have the option to ask sending PSPs for a breakdown of their APP scam data, so that they can check it. In addition, sponsor PSPs, where they have the ability to, have the option to identify APP scam transactions that should be allocated to their indirect PSPs. The PSR proposes to require sending PSPs to assist receiving PSPs in this checking process, if they ask for it.
- Sending PSPs will re-submit their final data to the PSR (or confirm that there are no changes), with any adjustments that they consider appropriate (following any requests for revisions from receiving PSPs). Their submissions will be signed-off by the Chief Financial Officer or equivalent to provide assurance over this data.
- The PSR will review the final data submitted by the sending PSPs and publish it six months after the end of the data period. The PSR will publish the metrics together.
The deadline for responding to the consultation paper is 17 January 2023.