One Year On: Impact of APP Fraud Reimbursement on Victims

The Payment Systems Regulator (PSR) has marked the first anniversary of its Authorised Push Payment (APP) reimbursement policy by releasing new data that highlights significant progress in protecting victims and improving fraud prevention across the payments sector.

A year of stronger consumer protectionSince the policy came into force on 7 October 2024, £112 million has been reimbursed to victims of APP scams. The PSR’s latest dashboard shows that 97% of claims were resolved within 35 days, and 84% were resolved in just five business days. In total, 88% of the money lost to APP scams and claimed back was returned to victims, up from 66% the previous year.

Claim volumes have also fallen by around 15%, with 126,000 claims made between October 2024 and June 2025. The PSR says this reflects a stronger fraud prevention response from firms, with many now successfully stopping scams before money leaves customer accounts.

David Geale, Managing Director at the PSR, said:

Reaching the first anniversary of the reimbursement policy is a huge milestone. We have seen strong, positive early outcomes with payment firms stepping up by preventing fraud from happening in the first place and reimbursing victims quickly. This simply wasn’t happening consistently before our policy came into force.

Policy evaluation underwayWhile the early data points to a clear improvement in consumer outcomes, the PSR has commissioned an independent evaluation to assess the policy’s overall impact. The review will consider whether any refinements are needed, with findings expected in spring 2026.

Geale went on to further say:

Bringing in significant reforms like these is a big change, and we are conscious that there may be things that could be done differently. That’s why this evaluation is important – so we can assess what has worked and where things might be done differently.

Exploring the human impact of APP fraudAlongside the reimbursement data, the PSR has published findings from its latest APP fraud survey, revealing how fraud affects victims’ trust and behaviour.

Key insights include:

• Trust in banks improves following reimbursement: 50% of reimbursed victims said they trusted their bank more, compared with around one in three who were not reimbursed.

• Social media platforms see trust decline: 38% of victims said they trusted social media companies less following fraud, while 42% reported increased trust in their bank.

• Purchase fraud remains prevalent: Nearly 60% of victims were targeted through purchase scams, with notable rises in delivery, impersonation and charity fraud.

• Low awareness of the reimbursement policy persists: 71% of victims said they were unaware of the policy, and 49% did not attempt to seek reimbursement. However, wider consumer research shows most people feel reassured knowing such protection exists.

Geale emphasised the importance of collaboration across sectors:

Today’s research shows that fraud continues to evolve, and that reported fraud levels do not tell the whole story of fraud in the UK. It is important to take a whole system approach with social media platforms and other regulators to help tackle the problem at source. As we work ever more closely with the FCA, we are leveraging our combined powers and resources to tackle APP fraud at all levels.

It is clear that more can be done to help victims know what they can do if they fall victim, and we expect firms to make sure everyone knows their rights.

To underline the real-world impact of its policy, the PSR has shared anonymised case studies illustrating the range of scams that fall under its reimbursement requirements. These stories highlight the regulator’s ongoing commitment to ensuring that victims of APP fraud are treated fairly, reimbursed promptly, and better protected in future.

Read the press release here.