Regulation

Payments regulator probes banks over APP fraud

PSR asks banks to confirm they are registered before its authorised push payment fraud rules come into force

Banks are lobbying against measures that could see them pay out millions in redress, but regulators want to keep them on track by asking questions about their progress
Banks are lobbying against measures that could see them pay out millions in redress, but regulators want to keep them on track by asking questions about their progress Photo: Hollie Adams/Getty Images

The Payments Systems Regulator has hit firms with a letter to check whether they are ready for new rules that could force them to pay millions in compensation to fraud victims, Financial News has learned.

The PSR is pressing ahead with changes to how savers are reimbursed in so-called authorised push payment fraud, where fraudsters trick victims into transferring them money.

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