APP Reimbursement Rates Shoot Up to Cover 88 % of Claims

The UK’s Payment Systems Regulator (PSR) has reported a significant rise in the proportion of authorised push payment (APP) fraud losses that are being reimbursed to victims, with 88 % of stolen funds now returned under the regulator’s mandatory reimbursement rules introduced in October 2024.

This development marks an important milestone in the fight against APP scams — a category of fraud in which consumers are tricked into making bank transfers directly to criminals — and reflects the impact of regulatory reform aimed at strengthening consumer protection in the UK payments system.

For victims of APP fraud, the landscape is changing: reimbursement is increasingly the norm, not the exception.

The New Regulatory Framework

Prior to October 2024, reimbursement of APP losses was largely inconsistent, governed by voluntary codes such as the Contingent Reimbursement Model (CRM), where individual banks and payment firms chose their own policies. Reimbursement rates varied widely, sometimes leaving victims without recourse.

The PSR’s mandatory reimbursement requirement, which took effect on 7 October 2024, obliges all banks, building societies, payments firms and e-money institutions to reimburse eligible victims for losses caused by APP scams up to a limit of £85,000 per claim.

Under the new regime, responsibility for reimbursing victims is shared between the sending and receiving firms, creating stronger incentives for all parties to improve fraud detection, risk assessment, and preventive controls.

Strong Consumer Outcomes

Between 7 October 2024 and 30 September 2025, UK firms reimbursed approximately £173 million to APP victims — about 88 % of the money lost in such scams during that period.

The PSR’s report highlights that the industry responded quickly to the new rules, with the following operational outcomes recorded during the first year of implementation:

• A significant majority of claims were resolved quickly, with 82 % concluded within five business days, and 98 % within 35 business days.
• Only a small fraction of claims (around 3 %) were rejected, typically when customers failed to meet the required standard of care when authorising the payment.

These figures point to an increasingly effective reimbursement process that not only returns funds to victims but also streamlines the experience for consumers seeking redress.

A Marked Improvement Over Past Practice

Historical data illustrates the extent of the shift. Under the voluntary CRM code in 2023, reimbursement by value was estimated at around 67 % of APP losses, with substantial variation between firms. The new mandatory framework has significantly closed that gap, delivering more consistent outcomes across the industry.

The jump to an 88 % reimbursement rate underscores how regulatory certainty can transform consumer protection in practice.

Broader Implications for Fraud Prevention

While reimbursement provides financial relief to victims of APP fraud, it is not a cure for the underlying problem of scam prevalence. Industry reports continue to highlight that APP fraud remains a significant driver of losses in the UK payments ecosystem.

Even as reimbursement rates climb, financial services experts emphasise that prevention — through improved fraud detection, customer warnings, and risk-based payment controls — must remain a priority. The PSR’s reimbursement mandate is intended to complement these preventative efforts by aligning incentives across payment firms.

Reimbursement does more than compensate victims; it pushes firms to innovate and invest in better fraud deterrence.

Looking Ahead

The PSR’s reimbursement policy will undergo ongoing review, with a more comprehensive evaluation expected after 12 months of full implementation. This future reporting will likely assess not only reimbursement outcomes but also how effectively the industry is preventing scams at the source and addressing emerging threats.

As criminals adapt their tactics — including using social media platforms and deceptive communications — regulators and industry stakeholders face the continual challenge of keeping pace with evolving fraud patterns.

Still, the latest figures suggest that the UK’s mandatory reimbursement regime is delivering on its core objective: ensuring that victims of fraud are not left holding the financial loss alone.

In the shifting landscape of payment fraud, rising reimbursement rates represent real progress — but they are only part of a broader fight for financial security.

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