Finextra Research reports that a new draft bill that was unveiled at a global fraud summit would allow UK banks to postpone payments for an extra 72 hours in the event that they suspect APP fraud. The present rule requiring banks to process payments by the next business day is being replaced by this action, which aims to give banks more latitude to look into suspected fraudulent transactions.

Fraudsters use a variety of deceitful strategies, as emphasized by City Minister Bim Afolami, who said, "They create false narratives and weave intricate webs of lies to trick people into sending money." Before money is transferred, this legislation will give banks, other payment service providers, and law enforcement more time to contact victims and end the fraudster's spell. The concerning increase in APP scams highlights the importance of this action, forcing the government to take immediate action to safeguard customers' money.

The measure incorporates suggestions from the Payment Systems Regulator and is expected to become law by early October. Interestingly, it contains clauses that reimburse APP fraud victims for damages up to £450,000, which accounts for the great majority of money lost to these schemes. The government's commitment to improving consumer safety in the financial sector is evident in this legislative action, especially in light of the rise in sophistication of online fraud schemes.

This draft bill's introduction represents a significant step forward in the UK's fight against financial fraud. The government hopes to drastically lower the frequency of APP fraud by giving banks more time to look into suspicious transactions, giving customers a much-needed extra degree of protection.

At the global fraud summit, City Minister Bim Afolami emphasized the significance of the act by saying, "Fraudsters spin whole webs of lies and fabricate all sorts of things to convince people to send them money." Before money is transferred, this legislation will give banks, other payment service providers, and law enforcement more time to contact victims and end the fraudster's spell.