Payment Systems Regulator (PSR) proposals to make the reimbursement of APP scam victims mandatory could have potentially “severe” consequences for innovation and competition in UK payments and a negative impact on consumers.
Responding to the PSR’s consultation that closed last week, the Payments Innovation Forum (PIF) warned the proposed changes amount to a "Cheaters’ Charter" and a "sticking plaster" that underplay the advantages of a joined-up approach to tackling APP scams.
PIF Executive Director Diane Brocklebank said, “Fraud is complex and comes in all shapes and sizes. Having a blanket requirement does not address the different types of fraud and why they occur. Time and money would be better spent understanding fraud typologies and educating those impacted by APP scams to understand their role in preventing fraud.”
PIF also warned the mandatory reimbursement proposals will increase financial exclusion and deter investment in UK fintech.