Financial Services: Fraud
The question
To ask the Chancellor of the Exchequer, with reference to the Payment Systems Regulator's document entitled Specific Direction 17 on expanding Confirmation of Payee, published in October 2022, what assessment she has made of the potential impact of that Direction on trends in the level of fraud.
Answered by Rachel Blake
The Government is committed to tackling fraud and protecting victims from this appalling crime. The Government has recently introduced a new and expanded Fraud Strategy and is determined to turn the tide on fraud and better protect the public and businesses.
Specific Direction 17 was issued by the independent Payment Systems Regulator in October 2022 under the Financial Services (Banking Reform) Act 2013. It requires certain payment service providers, including some participants in Faster Payments and CHAPS, to use Confirmation of Payee. This is a name-checking service designed to reduce certain types of authorised push payment fraud and accidentally misdirected payments.
As Specific Direction 17 is made and overseen by the independent Payment Systems Regulator, this is a matter for the PSR.
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