| Link(s): | Firms should strengthen anti-fraud systems and must treat victims of fraud better, review finds | FCA Anti-fraud controls and complaint handling in firms (with a focus on APP Fraud) | FCA |
Context
The FCA has published a press release and a report following a review of certain firms’ fraud controls and complaint handling. Although the report found examples of good practice, the FCA was disappointed with the way some firms supported customers who were the victims of fraud. The review and report focus on Authorised Push Payment (APP) fraud, but a number of the findings and FCA comments can be applied to any firm in relation to financial crime controls.
Key points to note
The review found:
- Firms can do more to strengthen their systems designed to detect and prevent fraud.
- Management information and actions are often focused on commercial risk appetite, rather than customer impact and treatment.
- There is not enough focus on delivering good consumer outcomes in many firms.
- Some firms could do more to improve the support they offer to victims of fraud.
- Poor complaint handling, including firms often taking too long to respond. Customers were provided with decision letters that were sometimes unclear, confusing, or included unhelpful and, on occasion, accusatory language.
- Firms are not fully considering characteristics of customer vulnerability when making decisions about fraud claims and complaints.
Next actions
None – for information and awareness.