Progress update on PSR’s new APP scam reimbursement rules

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In a recent letter to Dame Harriett Baldwin MP, Chair of the Treasury Select Committee, the Payment Systems Regulator (PSR) has provided a progress update on the implementation of measures as a result of their upcoming reimbursement requirements in respect of authorised push payment (APP) scams.
The PSR’s aim is to prevent APP scams with the introduction of a new set of rules requiring payment service providers (PSPs) to reimburse victims of APP fraud and to introduce new fraud prevention techniques to prevent APP scams occurring. Under the new rules, the cost of reimbursing victims will be shared equally between sending and receiving PSPs. The PSR is also consulting on extending the requirements to CHAPs payments.
In its letter, the PSR notes that there is a significant amount for industry to deliver by 7 October this year when the new rules come into force. The PSR expects to see firms:
The PSR is working alongside Pay.UK to support the development of operational guidance and management of the risks of delivery, as well as the Financial Ombudsman Service to ensure that hearing of appeals under the requirements is well supported. As noted above, Pay.UK is also developing a claims management system to enable firms to communicate about, and manage, APP scam claims as well as report data to Pay.UK to enable it to monitor firm compliance.
Clearly there is work to be done for firms to meet the 7 October implementation date and industry and regulator collaboration remains crucial for the policy to operate effectively. Given the maximum reimbursement level of £415,000, smaller PSPs in particular should take care to assess their systems and process and fraud prevention frameworks to enable them to comply with the new rules and limit the occurrence of APP scams as much as possible.
"We will continue to monitor industry and Pay.UK’s progress towards timely and effective implementation and to provide support where needed. I can assure the Committee that we are doing everything we can to ensure the implementation of reimbursement requirement and consumers will be protected from the ‘go live’ date of 7 October."
https://committees.parliament.uk/publications/44898/documents/222818/default/