UK Regulator Reports Spike in Authorised Push Payment Scams

In 2023, there were over 252,000 cases of authorised push payment scams in the UK, amounting to £341 million lost. Despite the rise in scam volume by 12%, the total value dropped. Reimbursement inconsistencies persist among banks, with only some banks fully reimbursing victims.

A UK regulator announced on Thursday that more than 252,000 cases of authorised push payment (APP) scams were reported last year, causing losses exceeding £340 million ($438 million). The Payment Systems Regulator (PSR) noted that while the number of scams rose by 12% in 2023, the total value of lost funds decreased by 12% from the previous year.

The report from the PSR highlighted that 67% of the funds lost to these scams were reimbursed in 2023, up from 61% in 2022. However, it emphasized the inconsistency in the reimbursement process among different banks. The report criticized the current system where only the sending firms handle reimbursements, neglecting the significant role that receiving firms play in the prevention of such scams.

Examining the practices of the largest 14 banking groups in Great Britain and Northern Ireland, the report found that reimbursement rates varied significantly. Nationwide reimbursed 96% of APP scam cases fully, followed closely by TSB at 95%, with Barclays at 82%. In stark contrast, only 3% of cases reported to AIB were fully reimbursed. The payments sector had previously urged the regulator to delay new compensation rules set to be implemented in October to prevent harm to competition.

(With inputs from agencies.)