Thought piece from Kate Fitzgerald, Head of Policy at the Payment Systems Regulator  

The Payment Systems Regulator (PSR) has been working to combat fraud for several years, and we’ve just reached another major milestone. Following regulatory action by the PSR, over 300 financial firms have now adopted Confirmation of Payee (CoP). This means that over 99% of all transactions made through Faster Payments and CHAPS will benefit from this crucial safeguard, offering consumers a stronger defence against fraud. 

Why does this matter? Fraud is a devastating crime, and as fraudsters become increasingly sophisticated, people continue to lose life-changing amounts of money. In just the first half of 2024, over £213 million was stolen through Authorised Push Payment (APP) fraud, where victims are tricked into sending money to criminals posing as legitimate payees. Every one of these cases represents not just a financial loss, but emotional stress and a loss of confidence in making payments. 

A vital anti-fraud tool 

CoP was designed to tackle this problem by introducing an extra layer of protection. It works by verifying that the name of the account you’re sending money to matches the name of the person or business you intend to pay. If it’s not an exact match, you’ll receive an alert, allowing you to review and correct the payment details before proceeding. This gives people a critical opportunity to pause, double-check, and stop fraud in its tracks. 

Consumers can now expect CoP checks to be the standard across most transactions when sending money to new accounts, whether paying a friend or a business.  

Tackling fraud from every angle 

Expanding CoP is just one part of the PSR’s wider plan to tackle APP fraud. While CoP is a valuable tool, it can’t solve the problem on its own, and more needs to be done. Fraudsters keep finding new ways to deceive people, often using clever tactics like social engineering. That’s why we’re taking a broader approach:  ensuring widespread checks and safeguards, creating strong financial incentives for the industry to act, and encouraging better data and intelligence sharing. 

Earlier this month, new mandatory reimbursement rules came into force, making it quicker and simpler for victims of APP fraud to recover their money. These rules set a guaranteed minimum level of protection, ensuring that banks and payment providers are more proactive in preventing fraud in the first place. 

However, it’s still important that people exercise caution, remain vigilant and stay alert to warnings like CoP from their bank or payment provider. CoP is the first line of defence and has already proven to be a powerful tool in the fight against fraud. Since its initial launch in 2020, more than 2.5 billion CoP checks have been completed.  

This new milestone of over 99% of CoP coverage follows several years of strategic action and collaboration between the PSR, financial firms, and Pay.UK, which has played a critical role in delivering CoP and developing the rules and standards underpinning its technical success. Following the success and continued growth in the UK, we know it is also gaining international attention as others look at how best to tackle fraud in their own payment landscapes.  

Collective action on fraud must continue 

The expansion of CoP marks a significant step forward, but the fight against fraud continues. Tackling fraud requires collective action—not just from payment firms, but from all players involved in the fraud chain. In the coming months, we’re planning to publish data that sheds light on how fraudsters target victims, including through social media platforms, to drive broader accountability and preventative measures. 

By raising awareness and providing transparency on points of vulnerability, we hope to raise consumer awareness on the platforms and services fraudsters use to target victims. We also hope this will drive action from social media platforms, telecoms companies, and other sectors that also have a role to play in preventing fraud and protecting consumers.