The Payment Systems Regulator (PSR) has released a new report investigating how the largest 14 banking groups in the UK are tacking authorised push payment (APP) scams.

The report, which covers the period from 1 January 2022 to 31 December 2022, looked at how banks treat the victims of APP and how much money they are reimbursed.

Monzo came bottom of the list, only fully reimbursing six per cent of cases, while Danske Bank reimbursed seven per cent of victims.

FStech has reached out to Monzo and Danske Bank for comment.

TSB was one of the best performing banks, fully reimbursing 94 per cent of APP scam cases and was followed by Nationwide which paid out in 91 per cent of cases.

The report covers 95 per cent of payments made by Faster Payments in the UK, with the PSA saying that Faster Payments were used for around 98 per cent of APP fraud payments.

The report also included data for ten smaller banking firms that were in the top 20 highest receivers of fraud. The PSA said these are included as they represent a disproportionately high level of fraud received for their size.

The PSA announced new measures in June 2023 which will see mandatory reimbursement requirements in place for victims of APP scams come into force in 2024.

The organisation said that there are currently inconsistent outcomes for customers who report an APP scam to their bank or building society. For example, some automatically reimburse in full, while others may only make a partial reimbursement, leaving victims to bear part of the loss. Additionally, some banks will only accept claims subject to very narrow circumstances.

The PSR said it will continue to collect data from payment firms over the next year and that it is also working with the FCA to identify where action is needed.

The regulator says it hopes the data it collects will raise awareness about the different ways fraudsters can target victims.

“This is the first time we can see at an individual level how well banks and payment firms are dealing with APP fraud,” said Chris Hemsley, managing director of the PSR. “This represents a substantial improvement in transparency.”

He added: “Our approach is working because we know there is a greater focus across many more firms on preventing fraud. Our commitment to transparency and the forthcoming mandatory rules are key to strengthening efforts to prevent these frauds from happening in the first place.”

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