Financial institutions and banks have been focusing on protections to tackle Authorised Push Payment (APP) scams, according to the latest review of the Contingent Reimbursement Model (CRM).
Signatories of the 2022 CRM code have made considerable efforts to crackdown on scam transactions, but the LSB notes that room for improvement is still needed.
In its assessment, the CRM evaluated the firms who had signatures on the code had correct provisions in safeguarding the customer’s payment journey.
It concluded the firms have placed an emphasis on:
- Increased focus on scam prevention
- Adopted sound governance structures and suitable executive accountability
- Adopted customer transaction analytics to prevent suspicious payments
- Enhanced digital effective warnings to be more targeted
Emma Lovell, Chief Executive of the LSB, commented: “APP scams have a lasting impact on victims’ mental health and their trust in others. Across industries, a greater focus on scam prevention is needed to stop both the harm caused to customers and lost funds going on to fund serious, organised crime.
“Signatory firms, under the Code’s requirements, have an improved focus on preventing APP scams from happening in the first place. We would urge those not signed up to do so, providing their customers with these increased levels of protection.”
The review of the CRM code comes during a time of economic distress in the UK during the current cost-of-living crisis, where financial security has become of significant importance.
Other areas of focus signatory firms have been advised on were face-to-face security, enhancing customer communications, and further work to support vulnerable customers were of particular priority.
Since its launch in 2019, the CRM code has become the focal point of customer protection when detecting, preventing and responding to APP scams. The review was conducted across nine signatory firms as of 1 February 2022.