The Payment Systems Regulator (PSR) has called for views on the second phase of the delivery of Confirmation of Payee (CoP), which is a service that aims to prevent authorised push payment (APP) scams and misdirected payments.
The PSR is inviting views on the impact and progress of CoP so far, the expected costs and benefits of phase two, as well as how CoP messaging works and how it could be enhanced.
In addition, the regulator has requested feedback on whether additional banks, building societies and financial institutions beyond the six biggest banking groups should have to implement the service by the end of 2021.
In August 2019, the PSR issued Specific Direction 10 (SD10), directing the UK’s six largest banking groups to introduce CoP for Faster Payments and CHAPS transactions, which was the first phase. Implementation was completed by July 2020.
According to data from UK Finance, APP scam losses totalled £479 million in 2020.
Genevieve Marjoribanks, head of policy at the PSR, said: “We’ve seen that the implementation of Confirmation of Payee by the UK’s six biggest banks is having a positive impact. But there’s more to do, and we must make sure we can prevent as many APP scams from happening as possible.
“We want to see all banks, building societies and financial institutions give everyone the same levels of protection when they make payments. That’s why it’s important the CoP system continues to adapt to deliver those protections and allow financial institutions to provide the service to everyone.”
This latest call for views is open until 30 June 2021, after which the regulator has said it will decide on the next steps.