New rules to protect consumers from fraud have gone too far and are unfairly costing firms, according to financial services business owner Virraj Jatania.

In October last year, a new law was introduced that means payment service providers, such as banks and other financial firms, must reimburse customers who fall victim to so-called ‘authorised push payment’ (APP) scams.

This is a type of fraud where customers are tricked into sending money directly to a scammer, as opposed to the fraudster hacking into their account.

Around £420.7m was lost to APP fraud in 2024, according to figures from UK Finance, down 2 per cent from 2023.

Under the new rules, brought in by the Payment Systems Regulator (PSR), it is mandatory for financial firms to reimburse money lost through APP fraud up to a

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