The model will set out the circumstances when the victims of authorised push payments (APP) scams would get their money back and whether it might come from their payment services provider (the sending PSP) or the PSP that received the money on behalf of a fraudster (the receiving PSP).
Reimbursement would be contingent on whether these PSPs had met the required standards, and whether the victim had taken a requisite level of care. The standards that PSPs need to meet would include processes – such as use of technology, rules and procedures – that help prevent and respond to APP scams.
The model will establish better incentives for PSPs to take action to prevent and respond to APP scams, and for consumers to remain vigilant. This should help minimise the number of APP scams happening in the first place, but also reduce the impact on consumers when these scams do occur.