On 2 April 2025, the All-Party Parliamentary Group (APPG) on Fair Banking published a report on authorised push payment (APP) fraud. The report investigates the scale and impact of APP fraud and considers the efficacy of regulation to address it.
The report
Key recommendations set out in the report include:
- All payment service providers (PSPs) should be required to establish a clear pathway for reporting fraud across all platforms, websites, apps, call centres and in person, to accommodate the differing communication preferences of customers.
- There should be greater disclosure of APP fraud numbers and types, including the average number of payments per case (broken down into specific fraud types) and numbers of complaints relating to non-payment of compensation for APP fraud losses that end up with the Financial Ombudsman Service.
- Firms should comply with a 5-day target for compensation under the Mandatory Reimbursement Requirement (MRR) scheme.
- Social media companies should be required to contribute towards the MRR and the Economic Crime Levy, and the Government should legislate (or act on existing legislation) so that social media companies are held accountable for their success, or failure, in tackling fraud.
- The Payment Systems Regulator should monitor how fraud warnings are being used, their frequency and content to ensure they are effective in deterring fraud and not being used as a reason to turn down compensation requests.
Next steps
The APPG notes that its research into APP fraud is ongoing, with the report providing a first investigation into the issue.