Modulr launches Confirmation of Payee to mitigate APP fraud
By Megha Bhattacharya
Modulr, a UK-based FinTech, today announced the launch of Confirmation of Payee, a fraud prevention initiative spearheaded by Pay.UK. The new feature is expected to offer an extra layer of defence to protect the FinTech’s customers from redirect payment fraud or the authorised push payment (APP) fraud. The product launch is the second such development to come out of Modulr’s £10 million grant from the Capability and Innovation Fund (CIF) under the RBS Alternative Remedies package.
Myles Stephenson, Chief Executive of Modulr, said, “We’re committed to delivering the very latest innovation in payments to our customers, and I’m delighted that we are the first non-bank or building society to offer Confirmation of Payee. Thousands of consumers and businesses fall victim to social engineering scams every year in the UK. Modulr is always looking for ways to help our customers keep their money safe.”
“We’re pleased to announce the launch of Confirmation of Payee offers greater assurance to businesses and consumers when making payments. This is a crucial step forward in the ongoing battle against fraud,, and it’s going to help us build a safer payments ecosystem in the UK.”
According to Modulr, the Confirmation of Payee will enable its customers to gain greater assurance of their payments. It checks and matches the recipient’s name and account details with that of the payment service provider. Confirmation of Payee reduces the risk of direct financial losses incurred by fraud and save operational costs by reducing the number of payments to be investigated.
Brian Cunnington, SME for the CoP project team, Pay.UK said, “We are delighted to see Confirmation of Payee now making a difference in the UK payments environment. The new service offers protection for consumers through the account name checking service, reducing errors and fraudulent misdirection of funds.”
APP fraud occurs when a person is tricked into approving a payment to a fraudster’s account, through social engineering, manipulation, or deceit.
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