UK Plots to Initiate PISPs Into Anti-Fraud Measures

Similar move in the Netherlands resulted in 81% fraud fall

On February 2, the OBIE launched a consultation in which it suggested expanding the confirmation of payee (CoP) and contingent reimbursement model (CRM) to cover payments made by payment initiation service providers (PISPs).

CoP is an anti-fraud mechanism which checks that the name of the payee entered by the payer matched the name associated with the account. It was first deployed in the UK in 2020, intended to stem hundreds of millions of pounds being lost to authorised push payment (APP) fraud.

"We have found that the risk of APP fraud in relation to peer-to-peer payments via PISP is comparable to other inter-bank payment transactions and equally susceptible to APP fraud," the OBIE said in its consultation.