Pay.UK develops new data model to help prevent APP fraud

Pay.UK has successfully developed a new tool for use in the fight against Authorised Push Payment (APP) fraud. The new ‘logical data model’ will serve as a foundation approach for categorising relevant customer data that enables both the banks involved in processing a payment (the sending bank and receiving bank) to more easily identify a fraudulent transaction.

The model will serve as the basis for a long-term to how the industry standardises customer data. This will allow payment service providers to improve how they exchange data, ultimately enabling more accurate, and faster detection of suspect payments.

This first iteration of this extensible data model is now available via our external portal, Standards Source.

We have developed this approach in collaboration with UK Finance’s Enhanced Fraud Data Working Group - specifically to help its members’ needs in the fight against fraud. In the first half of 2021, fraud losses totalled £753.9 million (£398.6m through unauthorised fraud and £355.3m through APP fraud).

Following the process detailed in our Standards Framework, the Enhanced Fraud Data Standards Group determined how a fraud data model could lead to the development of a common standard to facilitate improved data exchanges for fraud detection. Our industry engagement resulted in the first iteration of this logical data model for enhanced fraud data.

We will now continue our work with UK Finance, our customers and other stakeholders on the next stage of development towards a standard to combat fraudulent retail payments.

Contact us for more information.