The UK's Lending Standards Board (LSB) has published updates to the Contingent Reimbursement Model (CRM) Code – the set of voluntary standards which aim to protect people against authorised push payment (APP) fraud.
Launched in 2019 and overseen by the LSB, the CRM Code requires signatory firms to detect, prevent, and respond to APP scams. Signatory firms - who comprise the UK nine biggest financial institutions - also make a commitment to reimburse customers who lose money in cases where they were not to blame for the success of a scam.
The Board says the three most significant updates to the Code will help improve customers’ understanding of how firms are assessing APP scam cases, help prevent scams, and make the Code accessible and relevant to a wider range of firms.
The first update requires banks to ensure that customers are given a clear explanation to help them understand reimbursement decisions made by firms. Secondoly, all signatory firms will be required to activate Confirmation of Payee checks for outbound payments.
The third measure adjusts provisions within the Code to allow more firms to sign up, extending the model to a wider range of institutions and consumers.
Emma Lovell, chief executive of the LSB, says: “Today’s updates will up firms’ scam prevention efforts, ensure a wider spread of customers are protected from scams, and will help build transparency and understanding between firms and their customers.
“The rise and success of scams is not an issue financial services firms can solve on their own. By point-of-payment it is often too late - with victims socially engineered to proceed with the scam no matter what. We are therefore also calling on social media platforms, telecommunications companies, and utilities to step up and increase their efforts to intervene at every opportunity.”