In March 2023 we issued Policy statement PS23/1, APP scams: Measure 1 – Collection and publication of performance data, Specific Direction 18 (SD18) and Cycle 1 reporting guidance (to assist PSPs with providing the correct data).
In preparation for cycle 2, following lessons learned from the implementation of cycle 1 and extensive stakeholder engagement with sending and receiving PSPs, we are proposing changes to cycle 2 in relation to the timings and reporting periods captured under cycle 2.
Why we are publishing this document
In PS23/1, we said that we would collect cycle 2 data (and future data collection cycles) to cover a six-month period. We have since considered making changes to cycle 2, and now propose to move to 12-monthly reporting, so that the cycle 2 data-collection period captures all of 2023.
Our approach also allows the industry to focus efforts on delivering against the other steps that we are requiring firms to take in the coming months to reduce APP fraud in the UK and better to support victims.
Under these new proposals, firms would follow the same approach they took with cycle 1 – where we did not find that collecting two six-month periods in one cycle created additional burdens for firms.
Our Measure 1 data-collection processes are transitional arrangements until our reimbursement measures take effect in 2024. Following the implementation of our reimbursement requirement, we expect that the data that will be collected as part of the compliance regime can be used to replicate the metrics for Measure 1 – thus negating the need for a separate data-collection process.
Until this regime is in place, running future data-collection cycles based on a six-month period would mean that we would need to run the Measure 1 data collection process for at least three more cycles. We have considered feedback from stakeholders with regards to the resourcing needed by the industry to run cycle 1, and we think that requiring firms to report this data to us every twelve months is more efficient.
Our proposals would mean that for cycle 2 the data collection covers H1 2023 and H2 2023. The deadline for the initial submission is 16 February 2024 and we will publish the data in July 2024.
Who should read this document
This document is relevant to the payments industry, consumer groups, payment service providers.
What happens next
The consultation is open until 5pm on 22 September 2023. You can email your comments to firstname.lastname@example.org or write to us at:
APP scams team
Payment Systems Regulator
12 Endeavour Square