Santander, has issued a warning to customers about the threat of fraud after a 61-year-old was conned out of £80,000. The victim was introduced to the fraudster, whom she believed to be a friend while playing an online game. The fraudster persuaded her to make multiple large payments that amounted to over £80,000 in total. After the payments were made, the fraudster instructed the victim to lie about why she sent the money. Cutting off all contact when it was clear she had no more money to give.
Santander Warns Customers of Fraudsters
Fortunately, the victim was able to obtain a refund, and now Santander is calling on the banking industry to change the payment system. Including the mandatory use of Confirmation of Payee (CoP). This fraud prevention tool allows customers to verify that the name on the recipient’s account matches the intended recipient.
Santander also believes that the Online Safety Bill should be brought forward. With greater emphasis on preventing fraudsters from reaching their victims in the first place. They also suggest higher-value payments and transfers should be subject to additional verification checks before approval.
APP Fraud on the Rise
Reports of Authorised Push Payment (APP) fraud are increasing, with losses for the first half of 2022 reaching £249.1 million. Social media platforms are driving this, and has become one of the most prevalent types of fraud in the UK. In most cases, APP victims can’t obtain a refund as they are often held liable for the losses. To address this issue, new proposals from the Payment Systems Regulator (PSR) are putting pressure on banks to reimburse fully anyone who is conned out of more than £100.
It is alarming to learn that many UK banks have yet to adopt the Confirmation of Payee service. Nationwide implementation of this simple tool would significantly reduce APP fraud. As fraudsters would no longer be able to provide false details when receiving illicit funds.
The Importance of Confirmation of Payee (CoP)
Santander’s call for the mandatory use of Confirmation of Payee (CoP) is a crucial step towards combating fraud. CoP enables customers to verify that the name on the recipient account is the same person they intend to send money to. This simple verification process significantly reduces the risk of fraudsters using false details to trick victims into sending money.
The bank’s suggestion that higher-value payments and transfers should undergo additional verification checks before approval is another much-needed important step towards improving security in the industry. These extra checks could include identity verification, confirmation of the reason for the payment, and confirmation of the recipient’s details. By implementing these additional checks, banks can help to prevent fraudsters from accessing large sums of money conned through APP fraud.
Greater Emphasis on Fraud Prevention Needed
Santander’s warning to its customers and the banking industry at large is an important reminder that fraudsters will stop at nothing to steal money from unsuspecting victims. By implementing simple tools like CoP and additional verification checks, banks can significantly reduce the risk of authorised push payment fraud. It’s time for the banking industry to take action and make these necessary changes to protect its customers.
