UK APP fraud has dropped by 21% since the Payment Systems Regulator’s new rules, but a new Payments Association Director raises concern over continuing activity levels on digital platforms.
The UK’s Authorised Push Payment (APP) problem continues as the Payments Association has called on the Payment Systems Regulator (PSR) to weed out ad scams on digital platforms.
A report by Frontier Economics and the PSR in February 2026 revealed that its rules, which were introduced in October 2024, have seen APP fraud cases drop by 21%.
The rules, which requires financial institutions to reimburse victims 50:50 within five business days, saw 60% of APP scam losses reimbursed by value and 73% by volume over the first 12 months since the rules were put in place.
APP fraud: Social media the source
However, a report from the Payments Association revealed in the first half of 2025, £250m was lost to APP fraud, with 66% of all cases originating from online platforms such as social media, messaging apps, and marketplaces.
Released in March 2026 following the PSR’s findings, the Payments Association asserted the brunt of the liability is being placed upon financial institutions to detect, mitigate and reimburse APP fraud.
The report likened this as institutions looking to stop fraud “at the bottom of a waterfall”, as the fraud is originating “upstream” from digital platforms but banks are having to bear the responsibility of the “downstream” of fraud.
The Payments Association has attributed this to the tech sector’s voluntary commitments to stamp out fraud circulating on its platforms ultimately not holding up, as social media platforms such as Facebook, X and Instagram are able to generate revenue from advertisements, with some advertising fraudulent scams.
Renuka Rawlins, new Director of Policy and Government Relations at The Payments Association, told Payment Expert that current rules are only “treating the symptoms, not the source of fraud”.
“The findings show that while the current regime is working, it’s only treating the symptoms, not the source of fraud. While it’s encouraging to see that mandatory reimbursement is driving stronger fraud controls within the payments sector, the financial industry cannot solve this problem in isolation,” said Rawlins.
“Fraud doesn’t originate within payment systems – it begins across a much wider digital ecosystem, heavily driven by social media platforms and telecom networks.”
“The payments sector has stepped up, but a sustainable solution requires holding the platforms where these scams originate equally accountable. We look forward to engaging with regulators on this to ensure the future framework reflects the reality of the entire fraud pipeline.”
Renuka Rawlins to lead Payments Association gov affairs
Rawlins joins the Payments Association as its new Director of Policy and Government Affairs.
Announced today (1 July), Rawlins joins after serving as Head of Policy and Public Affairs at fintech firm Yaspa, having spent time as Government Affairs and Policy Manager at digital bank Revolut, as well as UK bank Barclays as its Vice President of Government Relations.
The Payments Association stated Rawlins will lead the organisation’s engagement with UK regulators and government bodies as the country is preparing to bring into effect new regulations centred around digital innovation, including cryptoassets and stablecoins.
Emma Banymandhub, CEO of The Payments Association, said: “Renuka is exactly the person we need to continue the policy drive we have seen from The Payments Association in recent years.
“Her combination of parliamentary insight, fintech knowledge and banking experience makes her uniquely qualified to advocate for our members. As regulatory frameworks evolve, Renuka’s leadership will be invaluable to ensure our industry’s voice remains central in guiding Europe’s payments future.”
