Regulator reveals how well banks responded to the scam
New figures published by the Payment Systems Regulator (PSR) have revealed the banks that were most affected by the authorised push payment (APP) fraud in 2022 and how well they performed in tackling the scam.
According to the PSR report, TSB, Santander, Monzo, Metro, and Starling were the banks most affected by the APP fraud. For every £1 million sent by TSB customers in 2022, £348 was lost to the scam, while Santander lost £322, and Metro and Monzo both lost £280.
The payments regulator reported that Monzo recorded the highest fraud case rate, with 141 of out every 1 million transactions being fraudulent, followed by Starling and Metro with 127 and Santander with 117.
PSR’s first APP scams performance report also showed how these banks responded upon learning and proving that their customers fell victims to the scam.
TSB fully reimbursed their customers in 94% of the cases, while Nationwide and Barclays followed with reimbursements on 91% and 79% of the cases, respectively.
“This is the first time we can see at an individual level how well banks and payment firms are dealing with APP fraud,” Chris Hemsley, managing director of the Payment Systems Regulator, commented on the release of the PSR report. “This represents a substantial improvement in transparency. This provides better information for customers on how firms handle APP fraud and encourages these firms to take more action to tackle it.
“Our approach is working because we know there is a greater focus across many more firms on preventing fraud. Our commitment to transparency and the forthcoming mandatory rules are key to strengthening efforts to prevent these frauds from happening in the first place.
“Over the coming months, we will be bringing all payment firms into new reimbursement arrangements to give more consistent protection across the board. This is important because we can see from today’s report that this has not always been the case.”
Authorised push payment fraud, PSR explained, happens when a fraudster tricks someone into sending a payment to an account outside of their control. The regulator said there are more incidents of fraud than any other crime type in the UK, with APP fraud accounting for 40% of fraud losses in 2022.
The PSR report includes the UK’s 14 largest banking groups, along with the data for 10 other smaller firms that were in the top 20 highest receivers of fraud.
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