UK Bank-Transfer Scam Victims: 97% of In-Scope Claims Now Reimbursed — What If Your Bank Said No?

The headline numbers from the PSR review

On 1 July 2026, the UK's Payment Systems Regulator published an independent evaluation of its mandatory APP reimbursement policy by Frontier Economics. The verdict: the rules introduced on 7 October 2024 are working — for authorised push payment scams sent over Faster Payments.

Finding	Figure	Source
Annual reduction in APP fraud losses	~£73 million	Frontier Economics / PSR
Reduction in the number of APP scams	Nearly 35,000	Frontier Economics / PSR
Reimbursement rate, all claims (before → after)	54% → 65%	Frontier Economics / PSR
Reimbursement rate, in-scope claims	97%	Frontier Economics / PSR
Short-term net economic benefit	£17M–£29M	Frontier Economics

The review found the biggest improvements at the firms that had the highest APP fraud levels before the policy — a sign the incentives are biting where they were needed most. It also found no evidence of market exits or reckless consumer behaviour, which some had predicted the policy would cause.

PSR managing director David Geale said: "The evidence is clear — APP reimbursement is working. Payment fraud losses are down, more victims are being reimbursed, and firms are investing in prevention."

But he added a caveat that matters more than the headline figures: "There is more to be done to ensure consistency in how consumers are treated." That is where this guide goes next.

The in-scope rules you need to know

These are the rules that decide whether your claim should be paid. If your bank refused you, measure its reason against each of these:

Rule	What it means
£85,000 cap	The maximum a firm must reimburse per claim. Firms may pay more voluntarily. The PSR says the cap means 99.8% of Faster Payments APP scams by volume and 90% by value can be fully reimbursed in scope.
5 business days	Your payment firm must reimburse you within five business days of your claim.
35 business days	The firm may pause the clock to investigate — but it must reach an outcome by the end of the 35th business day after the claim was made.
£100 excess	Firms may apply an optional excess of up to £100 — but it cannot be applied to vulnerable consumers.
13-month claim window	Report the fraud within 13 months of the payment.
Faster Payments, from 7 Oct 2024	Only payments made on or after 7 October 2024 over Faster Payments (and CHAPS) qualify.
Gross negligence exception	Reimbursement can be refused if you acted fraudulently or with gross negligence — but the PSR sets this as a high bar expected to apply in a minority of cases, and it does not apply to vulnerable consumers where the vulnerability materially affected their ability to protect themselves.

Two more mechanics worth knowing: the cost of reimbursement is typically split 50/50 between the sending and receiving payment firms, and micro-enterprises and charities are in scope alongside consumers — larger businesses are not.

The gap: outcomes still vary by bank

Here is the PSR's own admission, from the same 1 July 2026 announcement: "Inconsistent implementation has meant outcomes can still vary to some degree depending on who consumers bank with."

Read that again. A 97% in-scope reimbursement rate is the average. Some firms were already at the top of the fraud charts — and the review found those firms made the biggest improvements. That is good news for the trend, but it means your experience depends heavily on which firm holds your account.

The PSR says it is stepping in: a roadmap sets out its next steps, and a consultation launching before the end of 2026 will include proposals to improve consistency in how the policy is applied. The regulator also says that where it has identified poor compliance, it has intervened with firms and will continue to do so.

So if your bank said no while the industry average says yes — that gap is the story, and it is exactly the kind of case the consultation and the complaint routes below are for. Keep the bank's refusal letter: it is your evidence.

Action plan if your claim was denied or underpaid

Work through these in order:

1. Check the rules first. Was the payment a Faster Payments transfer on or after 7 October 2024? Did you report within 13 months? Is the amount at or under £85,000? If the bank cited "gross negligence," was the bar actually met — and are you a vulnerable consumer whose vulnerability affected your ability to spot the scam? Many refusals crumble when measured against the actual rules.
2. Get the refusal in writing. Ask for a written decision letter that states the specific reason and the evidence behind it. A phone "no" is not a decision — make them commit to a reason.
3. Make a formal complaint to the bank. This is separate from the claim. The bank must investigate the complaint and give you a final response. Keep every message, screenshot and statement in one file.
4. Escalate to the Financial Ombudsman Service. If the bank's final response doesn't satisfy you — or eight weeks pass without one — you can take the case to the Financial Ombudsman Service, which can award compensation. Not sure your case is strong? Run it through our Do I Have a Case? checker before you decide.
5. Report the crime. Report the scam to the police / Action Fraud as well. A crime reference number strengthens both the complaint and any Ombudsman case, and it helps stop the same fraudster hitting the next victim.

Paid a scammer in a different way — card, cash app, crypto, or a bank payment outside these rules? Run the Scam Recovery Navigator for the right recovery path, or read paid a scammer: what to do.

What the scheme does NOT cover

The APP scheme has hard boundaries. It does not cover:

Card payments. The scheme is for bank-to-bank push payments, not card transactions. If you paid a scammer by card, your route is a chargeback through your card network — check your deadline with our chargeback deadline calculator.
Unauthorised transactions. APP means you authorised the payment yourself, even though you were tricked. If someone used your card or account without your permission, that's an unauthorised-transaction claim under different rules.
Payments before 7 October 2024. The mandatory scheme only applies from that date. Older cases fall back to the voluntary code era — reimbursement rates were lower then (around 65% on personal accounts in 2024, per UK Finance).
International payments and larger businesses. International transfers and businesses above micro-enterprise size are out of scope.
Amounts above £85,000 per claim. Firms must pay up to the cap; above it, reimbursement is voluntary — and the complaint/Ombudsman route still matters.

One adjacent protection: UK credit card purchases of £100–£30,000 may qualify for Section 75 protection instead — a separate, often stronger route for card-paid scams.

FAQ

First, get the refusal in writing and check it against the PSR's in-scope rules — was the payment a Faster Payments transfer on or after 7 October 2024, reported within 13 months, under the £85,000 cap, and are you (or your vulnerability) within the rules? If the bank's reason doesn't hold up, make a formal complaint. If the complaint isn't resolved to your satisfaction — typically after a final response or 8 weeks — you can take it to the Financial Ombudsman Service.

Yes. The mandatory maximum is £85,000 per claim. Firms may choose to reimburse more than that voluntarily. The PSR says the cap means 99.8% of Faster Payments APP scams by volume and 90% by value can be fully reimbursed, provided they fall in scope of the policy.

The sending payment firm must reimburse you within five business days of your claim. It can pause the clock to investigate, but it must reach an outcome by the end of the 35th business day after the claim was made.

No. The PSR scheme covers authorised push payments made over Faster Payments (and CHAPS) on or after 7 October 2024. Card payments are not covered — those go through the chargeback process with your card network. UK credit card purchases of £100–£30,000 may separately qualify for Section 75 protection.