Just in case you were missing more acronyms – we got you covered. Account Push Payments (APP) are at the top of mind as the 7th October deadline looms when the Payment Systems Regulator (PSR) kicks in and forces sending and receiving financial institutions to share the losses incurred by victims of APP fraud.
Here is the TLDR:
The report highlights the need for better fraud prevention across all sectors involved in payment processing.
Overall Trends:
A total of £341 million was lost to APP scams in 2023, a 12% decrease from 2022.
The volume of reported scams increased by 12% to 252,626 cases.
Reimbursement Rates:
Reimbursement rates improved to 67% in 2023, up from 61% in 2022. However, the rate varied significantly across different banks.
#TSB had the highest reimbursement rate at 88%, while #Monzo, #Danske, and #AIB had the lowest.
Scam Distribution:
High-value scams over £10,000, which include impersonation and investment scams, made up 2% of cases but accounted for 52% of total losses.
Smaller firms were disproportionately affected, receiving a higher rate of scams relative to the number of transactions they processed.
Future Measures:
A new reimbursement framework will be implemented in October 2024, aiming to further increase reimbursement levels and distribute liability between both sending and receiving firms.
Challenges:
Discrepancies in how firms define and report APP scams continue to pose challenges.
See the full report here:
