Elmore Partners with Green Swan on APP Fraud Reimbursement Insurance

Elmore Insurance Brokers, a London-based independent international risk and insurance specialty broker, and RegTech Green Swan Compliance, a compliance technology company, have partnered to develop the Authorized Push Payments (APP) Fraud Reimbursement Insurance, which reduces the costs and uncertainty UK banks, Payment Service Providers (PSPs), E-Money Institutions (EMIs), and Authorised Payments Institutions (APIs) may face when the new rules in Oct come effective.

Green Swan stated that the insurance product can also be tailored according to the needs of the businesses.

According to UK Finance, losses due to APP fraud reached £459.7 million last year. To protect consumers, the UK's Payment Systems Regulator expects to implement new rules in October this year, when APP fraud victims may be reimbursed up to £415,000.

The introduction of the new rules gives extra protection to APP fraud victims while bringing pressure on compliance to financial institutions. According to these rules, if the victim is not significantly negligent, the financial firm must compensate them within five business days.

Under such circumstances, financial payment service companies, especially small and medium-sized enterprises, may face financial risks and pressures.