UK Finance recently released their latest fraud report. While sharing insights on this key update, the team at Lending Standards Board has provided their perspective on the findings.
For background, the LSB is responsible for overseeing the CRM Code, which has reportedly been the “only set of protections requiring firms to tackle authorized push payment scams by detecting them and putting in place measures to stop them.”
The LSB team has shared their comments following the release of the UK Finance fraud report.
Anna Roughley, Head of Insight at the Lending Standards Board said:
“The Contingent Reimbursement Model (CRM) Code has been instrumental in driving up reimbursement rates for Authorised Push Payment (APP) fraud and building a consistent approach to preventing and detecting scam across its signatory firms. Overall reimbursement rates for APP fraud have more than doubled since the Code was introduced, while the Financial Ombudsman Service has said it receives more complaints about APP fraud from non-Code firms – partly because Code signatories have better prevention measures in place.
Anna added:
“We’re proud of the role the Code has played in improving outcomes for people if they do fall victim to APP fraud – and in stopping people from becoming victims in the first place.”
Fraud remains a major problem as over £1 billion is stolen by criminals in 2023, according to an update from UK Finance.Set featured image
As reported recently, UK Finance recently released its 2024 annual fraud report, “detailing the amount its members reported as stolen through payment fraud and scams in 2023.”
Criminals stole £1.17 billion “through unauthorized and authorized fraud in 2023, a four per cent decrease compared to 2022.”
Banks prevented a further £1.25 billion of unauthorized fraud “through advanced security systems.”
76 per cent of APP fraud started online and 16 per cent started “through telecommunications networks.”
The financial services sector “is at the forefront of efforts to protect customers from fraud, including partnering with other sectors, government and law enforcement to prevent and disrupt this criminal activity and bring perpetrators to justice.”
Ben Donaldson, Managing Director of Economic Crime at UK Finance, said:
“Nearly £1.2 billion was stolen from customers in 2023 and the criminals who commit these crimes destroy lives and damage our society. The money stolen funds serious organized crime and victims often suffer emotional damage as fraud is a pernicious and manipulative crime.”
The financial services industry remains “at the forefront of efforts to protect customers, prevent fraud and support those who fall victim.”
