Victims of authorised push payment fraud have received £173 million in reimbursements during the inaugural year of new banking regulations, according to comprehensive data released by the Payment Systems Regulator. This substantial sum represents an impressive 88% of the total money lost to APP scams during the reporting period, marking a significant improvement in consumer protection within the financial sector.
Enhanced Consumer Protection Measures
The Payment Systems Regulator's figures cover the period from October 7th 2024 to September 30th 2025, following the implementation of mandatory reimbursement rules that fundamentally changed how banks handle fraud cases. These regulations, which came into effect on October 7th 2024, require financial institutions to reimburse customers who have been deceived into transferring money to fraudsters, eliminating the previous reliance on voluntary codes that created what consumer advocates described as a refund "lottery."
Significant Improvement Over Previous Systems
While direct comparisons present challenges due to differing reporting methodologies, the current 88% reimbursement rate demonstrates substantial progress when contrasted with previous figures. UK Finance had reported a 65% reimbursement rate for personal accounts in 2024 under the older voluntary system, indicating that the mandatory regulations have delivered meaningful improvements for consumers affected by financial fraud.
Claire Simpson, head of policy at the Payment Systems Regulator, emphasised the positive outcomes revealed by the data, stating: "Our data shows positive outcomes for consumers in the first year of our policy. We have seen better fraud prevention and more proactivity from industry in terms of preventing fraud, which is helping to reduce the number of claims being made."
Understanding Authorised Push Payment Fraud
Authorised push payment scams occur when individuals are manipulated into voluntarily sending payments to criminals who typically impersonate legitimate organisations. Common examples include fraudsters pretending to represent banks, government bodies such as HM Revenue and Customs, or other trusted institutions. These sophisticated scams exploit psychological manipulation rather than technical breaches of security systems.
Regulatory Framework and Limitations
Under the current regulatory framework that commenced in October 2024, banks must reimburse authorised push payment fraud victims unless the customer has demonstrated gross negligence in their transaction conduct. The regulations establish a reimbursement limit of £85,000, though financial institutions retain the discretion to exceed this threshold and repay higher amounts if they choose to do so. Additionally, firms may apply an excess of up to £100 per claim.
Claims Processing and Scope
During the first year of the new regulations, approximately 188,000 claims fell within the scope for reimbursement according to the Payment Systems Regulator's comprehensive data. The processing efficiency has been notable, with around 82% of claims being resolved within five business days, demonstrating improved responsiveness from financial institutions.
Only 3% of claims were rejected due to customers failing to exercise sufficient care over their transactions or submitting inadequate claim documentation. This relatively low rejection rate suggests that most victims are receiving appropriate consideration under the new regulatory framework.
Data Parameters and Limitations
The Payment Systems Regulator's data specifically includes APP scam claims that were reported to financial firms and closed within the reporting period, all occurring on the Faster Payments system within the United Kingdom. The statistics do not encompass reimbursements where both the sending and receiving accounts were held within the same financial institution and transactions were processed via internal transfer systems.
This comprehensive approach to data collection provides valuable insights into the effectiveness of the new regulatory framework while acknowledging certain limitations in scope that may affect complete representation of all APP fraud cases across the financial sector.
