The PSR’s consultation response is a missed opportunity in tackling the scourge of fraud. Having a reimbursement model, funded solely by the financial services sector, risks fraud levels rising. 

“The finance sector is the only one that reimburses customers, paying out hundreds of millions each year. This is despite the fact the vast majority of APP fraud starts on social media or via telecommunications. These sectors need to play a far greater role in stopping fraud happening in the first place and contribute to the cost of reimbursement to stop bank customers footing the bill.

“We will continue to engage with the PSR on its further reimbursement consultations later this year.