Add thelocalreport.in As A Trusted Source
Some £173m lost to authorized push payments (APP) fraud has been returned to victims in the first year of new reimbursement rules, according to the Payment Systems Regulator (PSR).
The regulator said this was equivalent to 88% of funds lost to APP fraud.
It added that while direct comparisons could not be made, UK Finance It was previously announced that the personal account reimbursement rate in 2024 would be 65%.
APP fraud occurs when someone is tricked into sending a payment, for example by a criminal pretending to be someone from a bank or a government agency such as HM Revenue and Customs (HMRC).
PSR’s data covers the period from October 7, 2024 to September 30, 2025.
New rules, overseen by the PSR, were introduced on 7 October 2024 requiring banks to compensate people who were tricked into transferring funds to fraudsters.
Previously, many bank customers relied on voluntary codes to retrieve their funds.
There are concerns that consumers face a “lottery” of refunds.
Claire Simpson, head of policy at PSR, said the data “shows the positive outcomes for consumers in the first year of our policy”, adding: “We are seeing better fraud prevention and the industry being more proactive in preventing fraud, which is helping to reduce the number of claims.”
Banks will have to compensate victims of authorized push payment (APP) fraud under rules that will come into effect in October 2024, unless there was gross negligence on the part of the customer.
Under the rules, the reimbursement limit is £85,000, although banks can choose a higher limit than this and repay a higher amount.
Companies may also choose to claim an excess of up to £100.
In the first year of the new rules, 188,000 claims were covered throughout the year, according to PSR.
Approximately 3% of claims are denied because the customer was not cautious enough about the transaction or claim.
Receive a free partial share worth up to £100.
Capital is at risk.
Terms and conditions apply.
advertise
Receive a free partial share worth up to £100.
Capital is at risk.
Terms and conditions apply.
advertise
Approximately 82% of claims are settled within five business days.
All claims included in the data occurred on the Faster Payment System within the UK.
This data only includes app fraud claims that were reported to the company and closed during the reporting period.
It does not include reimbursements where both the sending and receiving accounts are within the same company and the transaction is via internal transfer.
Rocio Concha, which one? The Director of Policy and Advocacy said: “The compulsory reimbursement scheme has been a game-changer for victims of fraud, so it’s great to see it continuing to work so well.
“These figures put beyond doubt the myth peddled by some in the industry that the scheme will lead to irresponsible consumer behavior.
“Despite the success of the first year, government Industry should not rest on its laurels.
“The program must be further strengthened to close the loopholes that could expose victims of fraud.”