How SOTpay Prevents APP Fraud and Secures Your Remote Payments
In today’s digital-first economy, Authorised Push Payment (APP) fraud has become a serious threat, with criminals finding increasingly sophisticated ways to deceive customers and businesses. APP fraud, where victims are tricked into authorising payments to scammers, has resulted in significant financial losses across the UK. In 2023 alone, £459.7 million was stolen through APP fraud, affecting over 232,429 victims UK Finance With fraudsters focusing heavily on online platforms and social engineering tactics, businesses need robust payment security solutions to safeguard their customers.
SOTpay steps in to address this challenge, providing a secure, multi-channel solution that protects both merchants and payers from the rising threat of fraud.
What is APP Fraud?
APP fraud occurs when a payer is manipulated into authorising a payment to a fraudster’s account, believing they are paying a legitimate business. According to UK Finance, 76% of APP fraud cases in 2023 originated from online platforms, with many scammers leveraging social media, emails, and fake websites to deceive consumers UK Finance
How SOTpay Secures Remote Payments
SOTpay’s innovative solution directly addresses these vulnerabilities by ensuring secure, verified transactions across various channels. Here’s how SOTpay helps businesses fight back against APP fraud:
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Secure Payment Links
SOTpay empowers retailers to send payment links through verified, secure channels like SMS, email, live web chat, and social media. This dramatically reduces the risk of fraudsters intercepting or impersonating legitimate payment requests, offering peace of mind to customers. With over 72% of APP fraud cases originating from online sources, this is a crucial step in protecting remote payments Finextra Research -
Merchant-Branded Communication
To reduce customer confusion and potential fraud, SOTpay ensures that all communications, including payment requests, originate from the merchant’s own domain. Consistent branding across emails and payment links reassures payers that they are dealing with a legitimate entity. This significantly reduces the likelihood of successful fraud attempts, particularly in the case of purchase scams, which were responsible for £85.9 million in losses in 2023 UK Finance -
Confirmation of Payee (CoP)
SOTpay utilises Confirmation of Payee, where customers can see the verified name of the business they are paying. This feature is critical for preventing fraud, as it empowers the payer to double-check that their funds are going to the correct account. APP fraud losses have been heavily driven by impersonation scams, which accounted for a substantial 43% of the total value of fraud in telecommunications cases UK Finance -
Fraud-Related Chargeback Protection
SOTpay offers a 100% fraud-related chargeback guarantee to protect merchants from financial loss. This provides additional assurance for businesses, ensuring they are not penalised by fraudulent transactions. In 2023, purchase scams accounted for over 67% of APP cases, and this guarantee is a valuable tool to mitigate such risks UK Finance
Real-Time Fraud Prevention
SOTpay continually evolves its fraud prevention strategies, staying one step ahead of fraudsters. Its proactive approach has been instrumental in helping merchants avoid significant losses, particularly in high-risk environments. In 2023, businesses lost £83.3 million due to APP fraud, underlining the importance of staying vigilant UK Finance
Additionally, SOTpay advises merchants to request verification before delivering goods or services, such as asking recipients to show their SOTpay payment receipt. This extra step provides another layer of security to the transaction and minimises the risk of fraud.
Statistics on APP Fraud in the UK
- In 2023, total APP fraud losses stood at £459.7 million, with 232,429 cases recorded
. - 76% of APP fraud originated from online platforms .
- Purchase scams led to £85.9 million in losses, the largest category of APP fraud .
- A significant portion of fraud also came from telecommunications, representing 16% of cases but 43% of total losses UK Finance
The Future of Payment Security with SOTpay
In the fight against APP fraud, businesses need solutions that offer both protection and transparency. With features like secure payment links, branded communication, and Confirmation of Payee, SOTpay ensures a secure payment journey for both merchants and customers. As fraud tactics evolve, SOTpay remains committed to enhancing its systems to provide a fraud-free environment for all parties involved.
As the 2023 data shows, APP fraud is still a major issue, but with SOTpay, your business can stay one step ahead.
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