The Payment Systems Regulator (PSR) has revealed that 88 per cent of the money lost to APP scams has been returned to victims following the launch of its reimbursement rules in October last year.

Between 7 October 2024, when the scheme was launched, and 30 September 2025, £173 million was reimbursed. This represents a 23 per cent increase on the amount returned to victims compared to 2024 figures from UK Finance.

The PSR said that during the period, reimbursement rates were high, firms responded to claims promptly, and there was "no indication of people being significantly less cautious."

It added that over the past 12 months, the regulator has seen claim volumes fluctuate as the reimbursement requirement took time to bed in.

Consumers have reported around 269,000 claims, with 188,000 in scope for reimbursement - representing 15 per cent fewer claims than the previous year.

82 per cent of claims were closed within five business days, while 98 per cent were closed within 35 business days.

Three per cent of claims were rejected due to the customer "not taking enough care" over the transaction or their claim.

The PSR's mandatory APP reimbursement scheme require all UK banks, building societies, payments and e-money firms to reimburse victims of APP fraud up to £85,000.

At launch, the regulator said that the vast majority of consumers could expect to be reimbursed within five business days of making a claim, with the scheme seeing more than 99 per cent of claims by volume covered.

Firms can choose to apply an optional excess of up to £100 for claims but this cannot be applied to vulnerable consumers.

At the time, the PSR said that it expected the rules to push banks and payment service providers (PSPs) to “innovate” and develop “data-driven interventions” to change customer behaviour, including the introduction of a risk-based approach to payments.

Last March, the government announced that the PSR would be abolished, with its operations merging with the Financial Conduct Authority (FCA) as part of prime minister Keir Starmer's drive to cut red tape and stimulate economic growth.

The decision follows complaints from businesses that the UK's regulatory environment had become too complex, with payment system firms having to engage with three different regulators – costing them time, money and resources.

The government said at the time that the consolidation would provide firms with a single point of contact, reducing complexity and expenses, particularly for smaller businesses trying to scale up.

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