The Payment Systems Regulator (PSR) has revealed that reimbursement for victims of authorised push payment (APP) scams still largely depends on which bank they use, according to its latest report on fraud performance in 2023.

The regulator found that while overall reimbursement rates have improved, there remain significant disparities between financial institutions. In 2023, victims reported 252,626 cases of APP scams totalling nearly £341 million. Under the existing voluntary reimbursement framework, 67 per cent of money lost to APP scams was returned to victims, up from 61 per cent in 2022.

However, the PSR noted a highly inconsistent approach among firms. Some banks, such as Nationwide and TSB, fully reimbursed over 95 per cent of APP scam cases reported to them. In contrast, AIB fully reimbursed just 3 per cent of cases, while Danske Bank and Monzo fully reimbursed 7 per cent and 9 per cent respectively.

David Geale, managing director of the PSR, said: "We can see some positive changes with more victims being reimbursed than in 2022. But there is still more to do – particularly for some smaller firms which have much higher rates of receiving fraud than larger firms."

The regulator also examined the prevalence of APP scams across different banks. For every £1 million sent by Metro Bank and TSB customers in 2023, £266 was lost to APP scams. This figure was £228 for Lloyds Banking Group customers and £219 for Nationwide customers.

In terms of receiving fraudulent payments, smaller firms were found to be disproportionately affected. For every £1 million received into Skrill's accounts, £18,550 was from APP scams. Among larger banks, TSB received £408 in APP scams for every £1 million, while Santander received just £41 per £1 million.

The report also highlighted the frequency of APP scam transactions. For every 1 million transactions made by Metro Bank customers, 137 were reported as APP scams. Monzo and Nationwide followed closely with 131 and 129 scam transactions per million, respectively. In contrast, the Co-operative Bank reported only 51 scam transactions per million.

The PSR emphasised that new mandatory reimbursement measures, set to come into effect on 7 October 2024, will "dramatically increase protection for consumers". These measures aim to standardise the reimbursement process across all banks and payment firms, potentially reducing the current disparities in victim outcomes.

The regulator plans to publish further data later this year to raise awareness about the various ways fraudsters target victims, including through social media platforms. This move is part of a broader strategy to combat APP scams, which continue to pose a significant threat to consumers despite increased efforts by the financial sector.

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