UK regulator estimates push payment scams totaling 341 million pounds

UK regulator says push payment schemes involving 341 million pounds were recorded in 2023

A UK regulator disclosed on Thursday more than 252,000 examples of approved push payment scams worth approximately 341 million pounds ($438 million) last year in which individuals lost money from bank accounts to fraudsters posing as genuine payees.

UK regulator estimates push payment scams totaling 341 million pounds

The Payment Systems Regulator reported that the number of such bank transfer scams climbed by 12% to 252,626 in 2022, although the overall value declined by 12% to £340.65 million in 2023.

According to the survey, which evaluates how well payment companies handle these types of scams and compensate victims, 67% of money lost to these types of bank transfer frauds was recovered in 2023.

Although that represented a decrease from 61% in 2022, the research stated that "firms still have an inconsistent approach when it comes to reimbursing victims."

"Currently, only the sending firm makes any reimbursement, ignoring the vital role receiving firms play in preventing scammers from accessing the UK's payments systems," it stated.

The report, which looked at reimbursements from the largest 14 banking groups in Great Britain and Northern Ireland, as well as data from 11 other smaller firms that were among the top 20 highest recipients of fraud, found that reimbursement for victims was still heavily influenced by which bank they used.

In June, Britain's payments sector urged its regulator to roll back and delay by a year stringent new compensation rules set to take effect in October, citing the need for "significant changes" to avoid harming competition.