Marking International Fraud Awareness Week, the Payment Systems Regulator (PSR) has published its latest data on the fraud prevention and name checking service, Confirmation of Payee (CoP).

Since its introduction in 2019, the PSR extended the service, CoP, to over 99% of firms who use Faster Payments. This invaluable tool has been a key step in delivering effective fraud prevention and stronger consumer protection, giving greater confidence and security for UK customers.

Confirmation of Payee has made a real difference to consumers:

Since its mandatory introduction, CoP has played an integral role in the UK’s payment infrastructure, helping to prevent misdirected payments and fraud. The rollout of CoP has seen exceptional uptake. Over 320 organisations now offer CoP checks, covering more than 99% of Faster Payments (FPS), and over 2 million checks are completed daily, helping to prevent fraud and reduce mis-directed payments.

Compliance with the PSR’s requirements means that the vast majority of payments made using FPS are covered by the initiative. So much so that CoP has achieved the PSR’s aim to become an everyday part of a consumer’s payment experience.

International following:

Many countries have also been keen to see how effective this tool has been. Australia and the EU have been working on similar systems as a result of the success of CoP in the UK and are rolling out their own versions to enhance consumer protection in payments.

David Geale, Managing Director at the PSR said: “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.”

Positive impacts on consumer trust:

CoP is a vital step in safeguarding people and reducing fraud-related losses across the UK. Following the expansion of CoP, on October 7 2024 the PSR introduced the Authorised Push Payment (APP) reimbursement requirement. Together, CoP and the APP reimbursement requirement have helped shift the dial on confidence and trust in payments and achieved real improvement for users in their actions against fraud.

Latest figures from the PSR dashboard show that in the first nine months following the introduction of the reimbursement policy:

  • £112 million was reimbursed to victims
  • 97% of claims were resolved in 35 days and 84% of claims were resolved within five business days
  • Claim volumes are down – this shows that firms are stepping up and stopping fraud in response to the requirements

In its latest survey on the impact of APP fraud on victims, the PSR explored victims’ levels of trust, financial confidence and financial behaviours after experiencing fraud. The research found:

  • 50% of those who were reimbursed said they trusted their bank more after experiencing fraud
  • Those who were not reimbursed are significantly more likely to feel hesitant about shopping with unfamiliar retailers compared to those who were reimbursed
  • 31% of victims report buying less overall since experiencing fraud
  • A significant proportion (43%) of consumers are taking the initiative to set up additional security features since experiencing fraud

David Geale continued: “We are committed to ensuring that payment systems work well for consumers and businesses. 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. We are committed to continuing to drive improvements in consumer protection, which is why we have commissioned an independent evaluation of the APP fraud policies to assess its impact and effectiveness and to understand whether things could be improved.”

Stay aware of scams:

Fraudsters use several techniques to trick victims into sending money. If it sounds too good to be true, it probably is. Here are some tips to stay vigilant:

Check who you’re talking to: If someone is claiming to be from your bank, and has contacted you asking for money, hang up the phone and get in touch with the organisation directly using their public contact details or the stop scams 159 phone number initiative.

Look a little closer: There may be details in the email, letter or phone call that indicate that it’s not from a genuine source, such as it listing an overseas contact phone number, or use of a generic, non-bank email address rather than an official address. Scam emails and letters also often contain spelling mistakes and poor grammar.

Take a moment: Don’t allow yourself to be pressured into sending money or revealing your personal details. Fraudsters will try to panic you into sending them funds by claiming your account is at risk or that you’ll lose money if you don’t act now. Trustworthy organisations don’t do this; contact your bank or Action Fraud to raise the case you have experienced for guidance. Take a deep breath and talk about your concerns with a friend or family member.

Say no: No need to be polite, just hang up the phone or end the interaction.

If you have already fallen victim to a scam: As soon as you realise you have fallen victim to a scam, immediately contact your bank or payment firm to report it. They will take all the relevant information from you and take steps to protect your account. When contacting your bank, use the stop scams 159 phone number initiative.