Jason Soroko
FRAUD DETECTION
Jason Soroko
Senior Fellow Sectigo
BANKS CURRENTLY BEAR THE BRUNT OF LIABILITY BUT THERE COULD BE A SHIFT TOWARD SHARED RESPONSIBILITY IF TECH PLATFORMS ARE FOUND TO FACILITATE FRAUD
How has the UK ’ s 2024 Mandatory Reimbursement Requirement spurred FIs to shore up security ? The new measures require financial institutions to reimburse customers who fall victim to Authorised Push Payment ( APP ) fraud , significantly increasing their financial liability .
This change incentivises banks to enhance their fraud detection and prevention systems to minimise losses . The added responsibility may also lead to increased liability handling costs and could impact their risk management strategies .
The implementation of new APP measures may prompt regulators to scrutinise tech firms ’ roles in fraud prevention more closely .
While banks are currently bearing the brunt of liability , there could be a shift toward shared responsibility if tech platforms are found to facilitate fraud due to inadequate safeguards .
Future regulations might evolve to impose stricter obligations on tech companies to monitor and prevent fraudulent activities , potentially affecting their liability in cases of APP fraud .
Jason Soroko
86 March 2025