Regulator will get powers to stop payment fraud scams

The government plans to introduce rules to allow the Payment Services Regulator (PSR) to make reimbursement mandatory if businesses are defrauded through authorised push payment fraud

Every year thousands of individuals and businesses fall victim to authorised push payment (APP) scams – where they are tricked into sending money to an account controlled by a fraudster. There are also a significant number of accidentally misdirected payments that are not recovered.

The latest figures show that in the first half of 2021, £355m was lost to APP scams, overtaking card fraud losses.

The PSR expects to see more action from financial institutions to stop these scams from happening and to better protect people if they do fall victim.

A consultation has now been issued seeking views on the extent of new powers. This includes:

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