Protect your bank through inbound payment monitoring:
PSR APP fraud regulation overview:
What is it and when will it come into force?

November 1, 2124

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A new reimbursement policy for Authorised Push Payment (APP) fraud is being introduced in the UK.

APP fraud happens when a fraudster tricks a victim into sending a payment to an account outside of their control. In 2022, there were around 207,000 reported APP fraud cases totalling losses of £485.2 million.

The new policy aims to increase the number of victims that receive financial reimbursement by offering enhanced consumer protection. In 2022, c. 60% of scams were refunded; the proposed regulatory change aims to increase reimbursement rates to closer to 100%.

This world-first reimbursement policy proposal can be summarized in two key statements:

  • It requires banks to reimburse in-scope customers who fall victim to APP fraud in most cases;
  • It shares the cost of reimbursing victims 50:50 between sending and receiving banks.

Page printed in December 12, 2024. Plase see https://www.feedzai.com/event/protect-your-bank-through-inbound-payment-monitoring-psr-app-fraud-regulation-overview-what-is-it-and-when-will-it-come-into-force for the latest version.