Payment Systems Regulator says APP reimbursement policy cut fraud losses by GBP 73 million a year and will consult on consistency

The Payment Systems Regulator published an independent review by Frontier Economics and a roadmap indicating that its Authorised Push Payment reimbursement policy is reducing fraud and increasing reimbursement for victims, while exposing uneven implementation across firms. Frontier estimated that annual APP fraud losses have fallen by GBP 73 million and the number of scams by nearly 35,000 since the policy was introduced. Reimbursement rates for all claims rose to 65% from 54%, and firms are now reimbursing 97% of claims that fall within the policy’s scope. The largest improvements were recorded at firms that had the highest APP fraud levels before the policy took effect. Frontier also estimated a short-term net benefit of GBP 17 million to GBP 29 million even after higher costs for payment service providers, and found no evidence of market exits or reckless consumer behaviour. The PSR said it will address inconsistent outcomes between firms through a consultation due before the end of the year, with proposals to improve consistency in how the policy is applied. It added that it has intervened, and will continue to intervene, where it has identified poor compliance. The regulator also plans to publish data by year-end on which platforms fraudsters are using to target victims and to work with partners including technology firms and telecommunications providers on a coordinated response.