Investment: Fraud
The question
To ask the Chancellor of the Exchequer, what assessment her Department has made of the effectiveness of redress mechanisms for victims of investment fraud.
Answered by Emma Reynolds
Protecting the public and businesses from fraud requires a unified and co-ordinated response from government, law enforcement and industry. The Government committed in its manifesto to introduce an expanded Fraud Strategy, and will set out further details in due course.
To better protect consumers from fraud, in October 2024 the Payment Systems Regulator (PSR) introduced a mandatory reimbursement requirement for authorised push payment (APP) scams, which may include investment scams, that take place over the Faster Payments System. This regime requires all Payment Service Providers in scope to reimburse victims of APP scams up to the value of £85,000. The PSR has noted that in the first three months of the regime, 86% of money lost to APP scams was returned to victims.
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