UK consumers lost 1.17 billion pounds to fraud in 2023, down 4% from 2022 but still representing over 3 million pounds stolen every day. Authorised push payment (APP) fraud -- where victims are tricked into sending money -- is now the largest fraud category. From October 2024, banks are required to reimburse most APP fraud victims under the PSR mandatory reimbursement scheme. (Source: UK Finance, Annual Fraud Report 2024; PSR, October 2024)
The Most Common Scams in 2026
APP Fraud Reimbursement -- Your New Rights from October 2024
The Payment Systems Regulator (PSR) mandatory reimbursement scheme requires banks to reimburse most APP fraud victims up to 85,000 pounds per claim. Both the sending bank and the receiving bank share the cost 50/50. Exemptions apply for: gross negligence (ignoring clear fraud warnings), claims under 100 pounds (some banks apply a minimum), and fraud linked to illegal activity by the victim. (Source: PSR, APP fraud reimbursement policy October 2024)
Important The PSR reimbursement scheme does not cover investment scams where you "knowingly" sent money -- even if you were manipulated. If you are contacted about an investment opportunity, check the FCA ScamSmart website at fca.org.uk/scamsmart before sending any money. The FCA warning list shows known scam investment firms. |
How to Protect Yourself
What to Do If You Have Been Scammed
- Call your bank immediately on the number on the back of your card -- use the 159 Stop Scams UK number if in doubt (159 connects you to your bank's fraud team)
- Report to Action Fraud at actionfraud.police.uk or 0300 123 2040
- Keep all evidence -- screenshots, emails, bank statements
- If you transferred money via your bank, formally request reimbursement under the PSR scheme in writing within 13 months of the payment (Source: PSR reimbursement rules 2024)
- If your bank rejects the claim, refer to the Financial Ombudsman Service within 6 months
Tip The 159 service connects you directly to your bank's fraud team from any UK phone. If you receive a suspicious call from someone claiming to be your bank, hang up and call 159 to verify. 159 is free from most networks. |
Disclaimer: This article is for information only and does not constitute financial or legal advice. Consult a qualified adviser for guidance tailored to your situation. Always check the FCA register at register.fca.org.uk before dealing with any financial firm. |
Frequently Asked Questions
Will my bank always reimburse me for APP fraud?
Not always. The PSR scheme covers most APP fraud up to 85,000 pounds but has exemptions for gross negligence and claims where the victim ignored clear fraud warnings from their bank. If your bank sent you a Confirmation of Payee warning that the recipient name did not match and you proceeded anyway, this may be used to reduce or refuse reimbursement. Banks must apply the standard of a reasonable consumer and consider vulnerability. (Source: PSR, reimbursement standard 2024)
What is Confirmation of Payee and how does it protect me?
Confirmation of Payee (CoP) checks whether the name you enter for a bank transfer matches the name registered to that account. If it does not match, you see a warning. All major UK banks are required to offer CoP on all transfers. CoP significantly reduces misdirected payments and impersonation fraud. Never ignore a CoP mismatch warning -- investigate before proceeding. (Source: Pay.UK, CoP rules 2024)
Sources
- UK Finance Annual Fraud Report 2024: ukfinance.org.uk
- PSR APP Reimbursement: psr.org.uk
- Action Fraud: actionfraud.police.uk
- Take Five Campaign: takefive-stopfraud.org.uk
- FCA ScamSmart: fca.org.uk/scamsmart
