This October in the UK, the UK Payment Systems Regulator (PSR) introduced new measures to reduce the financial impact of authorised push payment (APP) scams. This is good news for banks if it is passed, however, the onus on protecting their users online is greater than ever as a result.
The responsibility to safeguard the sensitive information shared online ultimately lies with the end user, banks and other financial services businesses.
This is why we’re proud to partner with Cifas to build a digital identity verification smartphone app that will protect customers from identity theft and fraud by offering an extra layer of protection against account opening.
The new frontier of APP scams
In an APP typical scam, scammers pose as someone you know or a legitimate organisation – whether it’s your bank, energy provider, or even a family member. They convince you to authorise a payment that’s impossible to get back.
These scams are continuing to increase, leaving financial institutions and their customers scrambling to keep up. And the potential updates in the compensation rules will be raising the stakes. Consumers may be left carrying more of the financial burden after falling victim to these scams. But instead of waiting for the threat to knock on our doors, we can build digital defences today.
Creating confidence through collaboration Digital identity verification is not a “silver bullet” to solving APP scams but it does offer greater protection by giving users further control over how and where their identity is used. The barrier here isn’t technology, it is convincing decision-makers in the financial services industry to do more, taking practical steps to protect their customers with readily available solutions.
That’s why education is just as critical. Fraudsters play on confusion and a lack of awareness, so the more you know, the better equipped you are to dodge their traps.
A proactive stance in the face of change The changes proposed by the PSR, while not yet set in stone, signal a shift in how APP scams are handled. Rather than waiting for the aftermath, Digidentity advocates for a proactive approach to online security.
No solution can completely eliminate the risk of fraud. However, with Digidentity's best practices, consumers and banks can add critical layers of security. Every additional layer, every extra step of verification, is another roadblock in the path of scammers.
