This study, conducted with 2,000 UK adults, reveals that these strategies do not appear to impact users' decisions, even though a recent regulation by the Payment Systems Regulator mandates that UK banks compensate customers who fall victim to APP scams, with coverage up to GBP 85,000 per incident.
Officials from Tunic Pay remarked that the PSR’s new regulations put greater pressure on banks to tackle the potential GBP 4 billion problem of APP fraud. Banks have invested heavily in creating friction to make customers think carefully about their payments, but the impact has been limited. If two-thirds of users are ignoring warnings, the system isn’t working, and fraudsters benefit. Slowing payments doesn’t mean slowing fraud.
Asking customers to confirm the identity of the person they’re paying (43%)
Providing warnings about fraud risks (41%)
Requiring biometric identification, such as fingerprint scans (38%).
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