Victims of authorised push payment (APP) fraud have received approximately £173 million in reimbursements during the inaugural year of new mandatory rules, according to fresh data from the Payment Systems Regulator (PSR). This substantial sum represents 88% of the total money reported lost to these sophisticated scams over the period.
A Significant Improvement in Consumer Protection
The figures, covering the period from 7th October 2024 to 30th September 2025, mark a notable shift from previous years. While direct comparisons are challenging, industry body UK Finance had reported a reimbursement rate of just 65% for personal accounts in 2024, prior to the implementation of the compulsory scheme.
APP scams occur when individuals are deceived into authorising a payment to a fraudster. Criminals often impersonate trusted entities such as banks, the police, or government bodies like HM Revenue and Customs (HMRC) to manipulate their targets.
Ending the Refund "Lottery"
The new regulations, introduced on 7th October 2024 and overseen by the PSR, were designed to end what had been described as a refund "lottery" for consumers. Previously, many banking customers relied on a voluntary code to attempt to recover lost funds, with success far from guaranteed.
Claire Simpson, Head of Policy at the PSR, stated that the data "shows positive outcomes for consumers in the first year of our policy". She added, "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."
How the New Reimbursement Rules Operate
Under the current framework, banks and payment firms are required to reimburse victims of APP fraud, unless the customer is found to have been grossly negligent. The rules stipulate a maximum reimbursement limit of £85,000, although firms retain the discretion to repay higher amounts. They may also apply an excess of up to £100 per claim.
During the first year, a total of 188,000 claims fell within the scope of the new reimbursement policy. The PSR reported that only 3% of claims were rejected on the grounds that the customer had not exercised sufficient care over the transaction.
Efficiency and Scope of the Scheme
The data indicates a high level of operational efficiency, with approximately 82% of claims being closed within five business days. All claims included in the report pertain to scams conducted via the UK's Faster Payments system.
It is important to note that the dataset includes only APP scam claims that were reported to firms and concluded within the reporting period. It excludes reimbursements for transactions where both the sending and receiving accounts were held within the same financial institution and processed via an internal transfer.
Industry and Consumer Advocacy Response
Rocio Concha, Director of Policy and Advocacy at consumer group Which?, welcomed the results, describing the mandatory scheme as a "game-changer for fraud victims". She commented, "It's good to see that it's continuing to work well. These figures dispel beyond any doubt myths peddled by some in industry, that this scheme would lead to irresponsible behaviour from consumers."
However, Concha also issued a note of caution, urging continued vigilance: "Despite its successful first year, the Government and industry should not rest on their laurels. The scheme must be strengthened further to plug gaps that could expose fraud victims."
The introduction of these mandatory rules represents a significant step in consumer financial protection, shifting the burden of proof and responsibility more firmly onto the banking sector to prevent fraud and compensate victims effectively.
