The report indicates an increase in reimbursement rates, while the total fraud value decreased.
In 2023, there were 252,626 reported cases of APP scams amounting to nearly GBP 341 million. Reimbursement for victims remains dependent largely on the victim’s bank, as noted in the PSR’s report.
The report covers three key areas:
Reimbursement to victims by the largest 14 banking groups in Great Britain and Northern Ireland.
Amount lost from victims’ accounts due to APP scams by these banking groups.
Amount received into fraudsters’ accounts from these banking groups to any UK payment firm.
In 2023, there were 4.5 billion transactions made through the Faster Payments system. The data shows that while reimbursement rates have improved from 61% in 2022 to 67% in 2023, discrepancies remain among firms. Currently, only the sending bank is responsible for reimbursement, leaving a significant role unaddressed for receiving banks in preventing fraud.
Regarding reimbursement rates by volume of cases, Nationwide fully reimbursed 96% of APP scam cases, TSB 95%, and Barclays 82%. Conversely, AIB fully reimbursed 3%, Danske Bank 7%, and Monzo 9% of cases.
In terms of the value of APP losses, TSB reimbursed 88% of losses, Nationwide 87%, and HSBC 76%. AIB Group, Danske Bank, and Monzo reimbursed 9%, 13%, and 17% respectively.
The report also highlights the amount lost to APP scams per million pounds sent. Metro Bank and TSB customers experienced losses of GBP 266 per GBP 1 million sent, while Lloyds, Bank of Scotland, and Halifax had losses of GBP 228 per GBP 1 million. Nationwide customers experienced losses of GBP 219 per GBP 1 million.
Regarding received fraudulent payments, smaller firms, such as Skrill, experienced disproportionately high rates of APP scams. For example, Skrill saw GBP 18,550 of every GBP 1 million received from APP scams. In contrast, TSB saw GBP 408, Metro Bank GBP 319, and Starling GBP 237 per GBP 1 million. Santander had a lower rate at GBP 41 per GBP 1 million.
The report also notes a high volume of APP scam payments for smaller firms. For instance, PayrNet had 2,705 scam payments per million transactions, whereas larger firms like Santander and Barclays had 33 and 35 respectively.
Overall, while the report reflects improvements in some areas, inconsistencies persist in how banks handle APP scams. The upcoming mandatory reimbursement measures, effective from October 7, 2024, are expected to enhance consumer protection. The PSR will continue to monitor and collaborate with the FCA to ensure compliance and improvement among payment firms.
The PSR will release additional data later in 2024 to further illuminate the origins of APP scams and fraudsters' tactics.
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