# Who pays when a UK customer falls for an APP scam?

> **Short answer:** Since October 7, 2024, UK payment firms must reimburse most eligible victims of authorized push payment scams made over Faster Payments, up to £85,000 per claim. The cost is split between the firm that sent the payment and the firm that received it.

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## What the rules require

From October 7, 2024, payment firms sending Faster Payments must reimburse eligible victims of authorized push payment scams, up to a maximum of £85,000 per claim.[^1] The cost is shared between the firm that sent the payment and the firm that received it.[^2]

## What changed for fraud teams

- **Receiving firms now pay too,** which gives them a reason to spot and freeze mule accounts.
- **Friction at the point of payment** became easier to justify: confirmation-of-payee warnings, holds and calls.
- **Data sharing between firms** matters more when both sides carry the loss.

## Why authentication isn’t the answer here

An APP scam is authorized by the real customer, so better authentication doesn’t prevent it. See [what APP fraud is](https://glide-cleartext.pages.dev/q/what-is-app-fraud/) for the controls that do.

## What this means for you

### Banks & credit unions

Both sides of the payment now carry the loss, so fraud controls on inbound payments and mule detection have a direct return.

### Fintechs & payment firms

If you receive Faster Payments into customer accounts, you share the cost of scams paid into those accounts. Onboarding checks and early mule detection matter as much as outbound controls.

### Developers & identity teams

Make it easy to pause, hold or recall a suspicious payment, and to share data with the counterparty firm. Both become cheaper than paying half a claim.

## Follow-up questions

**What is the maximum reimbursement?**

£85,000 per claim, as set by the Payment Systems Regulator.

**Which payments are covered?**

APP scam payments made over the Faster Payments system by eligible customers.


## Sources

[^1]: PS24/7: Faster Payments APP scams reimbursement requirement: confirming the maximum level of reimbursement. Payment Systems Regulator. https://www.psr.org.uk/publications/policy-statements/ps247-faster-payments-app-scams-reimbursement-requirement-confirming-the-maximum-level-of-reimbursement/
[^2]: PS25/5: APP scams reimbursement consolidated policy statement. Payment Systems Regulator, 2025-05. https://www.psr.org.uk/media/rhelv4op/ps25-5-app-scams-reimbursement-consolidated-policy-statement-may-2025.pdf

## Related questions

- [What is APP fraud?](https://glide-cleartext.pages.dev/q/what-is-app-fraud/)
- [How do banks stop OTP bots?](https://glide-cleartext.pages.dev/q/how-do-banks-stop-otp-bots/)

## Cite

Cleartext. “Who pays when a UK customer falls for an APP scam?” Last verified 2026-09-12 (rev. 1). https://glide-cleartext.pages.dev/q/who-pays-when-a-uk-customer-falls-for-an-app-scam/

## Changelog

- 2026-09-12: First published.