Which? comments as PSR opens consultation on ‘much-needed’ bank transfer protection

Gareth Shaw, Which? Money Expert, said:
“It’s right that progress is being made to introduce this vital protection. However, customers will question why it’s taken their bank so long to implement a system that could have prevented devastating financial losses years ago.

“To halt the alarming rise in bank transfer scams we must now see swift implementation of this much-needed measure across the board – and agreement on a scheme to reimburse all victims who have been left out of pocket through no fault of their own.”

Notes to editors:

  • The PSR’s assertion that confirmation of payee should be introduced quickly is encouraging (the consultation says: “In order to leave little room for scammers to operate from accounts that remain anonymous, widespread and quick adoption of CoP is needed.”)
  • The PSR’s estimates in the consultation suggest CoP would have an immediate and considerable impact to reduce the level of APP fraud. (The consultation says: “We estimate the overall losses due to maliciously misdirected APP scams that CoP could help prevent in the second half of 2019 once it is implemented effectively to be around £75 million…or £150m a year”).
  • The PSR’s estimate of the cost of CoP to industry is only £200m upfront and then £20m a year after that.
  • The PSR also estimates that over 10 years, the net benefits from investing in CoP would be £1bn.