Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that victims of high value Authorised Push Payment fraud are adequately protected under the mandatory reimbursement scheme.

The Government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. To protect consumers, under the Financial Services and Markets Act 2023, the Payment Systems Regulator (PSR) has introduced a mandatory reimbursement regime for Authorised Push Payment (APP) scams taking place over the Faster Payment system. This came into force on 7 October 2024.

The PSR’s rules require in scope Payment Service Providers (PSP’s) to reimburse victims of APP scams which take place over the Faster Payments System up to the value of £85,000, with responsibility split equally between the sending and receiving firms. The PSR has stated that it expects the £85,000 limit will cover 99% of claims. APP scams which take place over the CHAPS payment system are also in scope of reimbursement.

The PSR operates independently of the Government and has statutory responsibility for payment systems regulation. The PSR monitors compliance closely and has powers to take action where firms fall short of their obligations.