UK APPG publishes report assessing the APP fraud mandatory reimbursement requirement

The UK All-Party Parliamentary Group (APPG) on Fair Banking has published its latest report, "No Half Measures – A Blueprint to Beat APP Fraud", alongside a press release. The report assesses the UK's response to authorised push payment (APP) fraud and the early impact of the mandatory reimbursement requirement (MRR) introduced by the UK Payment Systems Regulator (PSR) in October 2024. The APPG recognises the MRR as a step forward in consumer protection but emphasises that it is not a complete solution to fraud. Key gaps remain, particularly in areas such as cryptocurrency platforms and international transfers, which remain outside the scope of the current reimbursement framework. The APPG calls for a balanced, system-wide approach, urging collaboration to effectively combat APP fraud rather than placing disproportionate expectations on financial institutions alone. In Q4 2025, there will be an independent one-year review assessing the impact of the MRR, as well as the PSR's wider policy approach to APP fraud.

The APPG report sets out a list of recommendations relating to this review that include:

• Surveying consumers to assess awareness, trust and experience with the MRR.
• Analysing fraud trends to determine whether improvements reflect effective prevention measures or limited awareness of the MRR.
• Engaging with the Financial Ombudsman Service (FOS) to understand consumer experiences with unresolved complaints and assessing the number of claims above GBP85,000 which were successfully reimbursed after going to FOS.
• Engaging with payment service providers (PSPs) on how they apply the MRR, especially regarding the application of "consumer standard of caution" and cases deemed as "civil disputes".
• Evaluating fraud prevention efforts by PSPs and considering if further support or standards are required.
• Identifying challenges faced by smaller PSPs in implementing the MRR and explore targeted support.
• Investigating fraud displacement, including potential shifts to areas like cryptocurrency.

The report also considers what further measures should be prioritised in the updated UK Government Fraud Strategy to address the problem of APP fraud in a way that is comprehensive, collaborative and fair.

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