← Back to Westminster Hall Debates
Authorised Push Payment Fraud
01 March 2023
Lead MP
Kirsten Oswald
East Renfrewshire
SNP
Responding Minister
Victoria Atkins
Tags
Crime & Law EnforcementNHSMental Health
Word Count: 3718
Other Contributors: 2
At a Glance
Kirsten Oswald raised concerns about authorised push payment fraud in Westminster Hall. A government minister responded.
Key Requests to Government:
I ask the Government to ensure that victims of authorised push payment scams are fully reimbursed and that banks improve internal mechanisms for identifying fraudulent accounts. I also urge them to consider making reimbursement mandatory across all banking firms and to work with social media companies to address fraud on their platforms. The hon. Member asks the government to take urgent action on victim reimbursement through legislative means and ensure that banks honour past voluntary commitments made to previous victims of APP fraud.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
I am concerned about the significant rise in authorised push payment fraud losses, which totalled £583.2 million in 2021, a 38% increase from the previous year. Many cases of this type of fraud go unreported, making it likely that these figures underestimate the true extent of losses. The impact on victims is devastating, with 71% experiencing increased stress levels and 63% reporting harm to their mental health. My constituent's business was infiltrated by sophisticated fraudsters who sent emails impersonating legitimate businesses, causing clients to lose thousands of pounds through unauthorized transfers. I am concerned about the sophisticated nature of authorised push payment scams that target vulnerable individuals, professionals, and businesses. These scams often result in significant financial losses for victims, with only about half of stolen money being reimbursed under current voluntary codes, leading to many losing their life savings.
Jim Shannon
DUP
Strangford
The hon. Member highlighted the critical nature of APP scams for his constituents, noting that £249.1 million was lost to these scams in the first half of 2022. He expressed concern over the ineffectiveness of current messaging and advocated for additional measures to protect vulnerable individuals.
The hon. Member thanked his colleague for initiating the debate, expressing concern about the slow progress in making full reimbursement mandatory. He mentioned specific cases from his constituency and urged for swift implementation of the code by the end of 2023 to prevent further delays.
Government Response
Victoria Atkins
Government Response
The Government is determined to protect victims from authorised push payment scams through the Financial Services and Markets Bill, which will remove legal barriers preventing regulatory action on reimbursement by the Payment Systems Regulator. The regulator is expected to mandate full reimbursement for APP fraud through faster payments within six months of Royal Assent. While the legislation is not retrospective, banks are encouraged to honour past voluntary commitments. The Minister also highlighted ongoing efforts across Government to prevent fraud, including the roll-out of confirmation of payee measures and consultations on enhanced information sharing between payment providers.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.