House of Commons · Written Ministerial Statement
Intercepting authorised push payment fraud
12 March 2024 · Treasury
Proposed by Bim Afolami Con Hitchin and Harpenden
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- Government proposes legislation to allow banks to delay suspicious authorised push payment transactions for up to four business days.
- Draft legislation includes reporting requirements and consumer protection measures for payment service providers.
- Feedback on the proposed statutory instrument is sought until April 12, 2024.
Issue summary
The government is addressing authorised push payment (APP) fraud by proposing legislation to allow banks to delay suspicious transactions.
Action requested
The government has published draft legislation allowing payment service providers to delay processing of suspected fraudulent APPs for up to four business days, with reporting requirements and consumer protection measures. Feedback on the SI is sought until April 12, 2024, and regulations will be laid before Parliament in summer 2024.
Key facts
- In the first half of 2023, there were 116,324 cases of APP fraud.
- The draft legislation allows payment service providers to delay processing of suspected fraudulent payments for up to four business days.
- Payment service providers must inform customers about delays and any costs incurred due to delays are covered by the provider.
- Small, medium, and large businesses can opt out with mutual agreement from their payment service provider.
- The FCA will engage with payment service providers on reporting requirements for compliance.
- Draft legislation and a policy note can be found at https://www.gov.uk/government/publications/the-payment-services-amendment-regulations-2024-policy-note.