I N D U S T R Y O U T L O O K
I N D U S T R Y O U T L O O K
• The rate at which APP fraud has increased has slowed dramatically , from a runaway 45 % year-on-year increase in 2019 to 12 % annual growth in 2023 .
• The Financial Ombudsman Service ( FOS ) has noted that over half the complaints received about APP fraud reimbursement come from customers not covered by the CRM Code – while CRM Code customers ’ complaints are more likely to be upheld .
Emma Lovell , Chief Executive of the LSB , said : “ The CRM Code has been a milestone improvement in customer protections – vastly increasing the chances of customer reimbursement after an APP scam and having a significant impact on the financial services sector ’ s efforts to prevent their customers from falling victim to an APP scam in the first place .
“ The CRM Code ’ s focus on prevention and detection , in particular , demonstrates what can be done when financial services firms pull in the same direction and opt to go above and beyond statutory requirements . Crucially , this focus on prevention not only limits harm to customers but stops money reaching criminals too . While there is still much work to be done to tackle APP fraud , the CRM Code ’ s signatories have delivered better outcomes for their customers over the last five years . We ’ re proud of the Code ’ s impact .”
The CRM Code covered ten PSPs , comprising major high street , digital , and challenger banks , lenders and other providers . It was launched in May 2019 , with the LSB ’ s independent oversight starting in July 2019 .
Since its introduction , the LSB has monitored signatory PSPs ’ implementation of the CRM Code , including specific reviews of signatory PSPs ’ approaches to reimbursement and their use of effective warnings to halt payments to fraudsters . The CRM Code was subject to a full review in 2021 . The LSB has also conducted research into what makes a scam warning effective , with recommendations rolled out to signatories .
In June 2021 , the LSB issued a warning to all CRM Code signatories , requiring all firms to improve the consistency of their reimbursement processes , how they identify www . intelligentfin . tech
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