£66m returned to APP scam victims in first six months of rules going live
Rules requiring banks to reimburse people who have been tricked into transferring money to a fraudster were launched in October last year.
Under the shake-up, banks must reimburse APP fraud victims, unless the customer has been grossly negligent.
Figures released by the Payment Systems Regulator (PSR) showed that in the first six months of the new rules, 87% of money lost to APP scams in scope of the policy was returned to victims, equating to £66 million.
Consumers reported around 109,000 claims, with 77,000 in scope for reimbursement.
Nearly nine in 10 (86%) claims were closed within five business days.
In the update on its website, the PSR said: 'The data shows positive outcomes for consumers in the first six months of our policy.
'Reimbursement rates were high, firms responded to claims promptly, and there was no indication of people being significantly less cautious.'
Some £27.6 million was reimbursed in the first three months of the new rules, rising to £38.4 million in the following three-month period.
A reimbursement limit of £85,000 applies under the rules, although banks can choose to go further than this and repay higher amounts.
The new protections apply when a transfer is made to and from a UK bank account. They cover transactions made from October 7 2024 onwards and do not apply retrospectively.
Previously, many bank customers relied on a voluntary code to get their money back. Concerns were raised that consumers faced a refund 'lottery'.
Criminals will often pose as trusted institutions such as banks, companies or Government departments to persuade people to part with their cash, with scams becoming increasingly sophisticated. They may also use artificial intelligence (AI) and deepfake videos to make scams seem even more plausible.
There are various reasons why an APP scam claim is not reimbursable under the policy, for example if it is a civil dispute, the PSR said.
Around 3% of claims in the first six months of the new rules were rejected due to the consumer being deemed not to have taken enough caution. This equated to around 1,100 rejections in the first three months of the new rules being launched and 1,700 claims turned down in the following three months.
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