Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
As part of our sector-focused series, we have spoken with our esteemed colleague and financial regulation solictor, Rory Copeland. Below, he gives us his thoughts on the key legal trends to watch in payments for 2020.
This article focuses on: instant payment fraud, Customer Authentication (SCA), open banking and the privatisation of currency.
Look out for similar 'Legal Trends to Watch' articles from the series, focusing on different industry sectors and practice areas, and read more of Rory's pieces here.
Regulators, industry bodies and government departments all
realised in 2019 that ubiquitous instant payments provides a huge market for
payment fraud. Specifically, new 'authorised push payment' (APP) services allow
a payer (often through the medium of their phone or computer) to send money
directly from their bank account to another bank account. These payments don't
engage card networks or credit clearing (which occurs when a cheque is sent),
so are instant for the most part.
Whilst APP is good news for many businesses and consumers, it
also creates a huge market for fraud. APP fraud is a growing phenomenon in the
UK and is well-documented. As online and mobile banking has become more widely
used, regulatory responses to APP fraud have begun to crystallise and may be
implemented in 2020.
Firstly, Confirmation of Payee (CoP) is a mechanism developed by
Pay.UK. Every bank account has a unique sort code, account number and account
name, but only the former two are needed by payment systems to execute a
transfer. Fraudsters can 'intercept' a payment by impersonating the intended
payee and providing different account details. CoP will ask a payer to confirm,
before a payment is executed, whether the account number to which their payment
is directed matches the account name which is in fact tied to that account.
Secondly, 2019 saw the establishment of the APP Voluntary Code,
which sets out the protections that banks and other payment service providers
(PSP) will put in place for their customers. An important and innovative component of the code is a 'no blame pot' to compensate victims when neither
their PSP nor the payee's PSP was at fault in a fraud. PSPs failed to reach a
consensus on how to fund the pot in November 2019, but the pressure will be on
major financial institutions to ensure the Code is system is impl
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Rory is a solicitor in the Financial Regulation team at Pinsent Masons LLP, with personal academic interests in private, public and international law approaches to emerging financial technologies.
0330 161 1234