Latest Payments News: UK APP Fraud Declines As Scammers Switch To Other Methods, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

UK APP Fraud Declines As Scammers Switch To Other Methods

Cases of authorised push payment (APP) fraud fell by a fifth in the UK last year thanks to investment in fraud prevention by businesses, according to a report from UK Finance.

The latest figures show that the value of losses to APP fraud fell to £450.7m in 2024, the lowest since 2021.

The industry body said the drop was the result of a number of interventions, particularly the large and ongoing investment in fraud protections by the banking and financial services industry.

APP fraud spiked during the pandemic and the value of losses has been on a declining trend since 2021, although cases continued to rise, peaking at more than 230,000 in 2023, UK Finance said.

The Payment Systems Regulator’s (PSR) mandatory reimbursement rules for APP fraud became an actionable compliance requirement for banks, payments and e-money firms operating in the UK on October 7, 2024.

As these split the cost of reimbursement for APP fraud 50/50 between the sending and receiving financial institutions, organisations on both sides of the transaction have been incentivised to identify scams in real time.

However, UK Finance stressed that the decline in cases and value of APP fraud began well in advance of the implementation of new PSR rules and highlighted a range of actions being consistently implemented across the industry.

It noted that, in preliminary reporting, the PSR found that 86 percent of money lost to APP scams that were in scope of its rules was returned to victims between the policy becoming operational on October 7 and the end of 2024.

Ben Donaldson, managing director of economic crime at UK Finance, said fraud was a continued blight on the country.

“To deal with this threat, we need a more proactive approach with the public and private sectors working more closely together and using data and intelligence more effectively,” he said.

“We also need the technology and telecommunications sectors to step up and actually fight the fraud originating on their platforms and networks.”

The report found that the style of APP fraud had changed since 2013, when it was characterised by increasing volumes of lower value, mostly purchase scam cases.

But heightened industry attention on APP fraud has seen criminals seeking to extract larger sums from more profitable scams.

As APP fraud has declined, remote purchase fraud has increased, likely signalling a shift in fraudsters’ tactics, UK Finance said.

Canada's Real-Time Payment System Moves A Step Closer With New Consultation

Payments Canada has launched a consultation on the legal architecture of its much-delayed Real-Time Rail payments system.

The consultation, which runs until July 2, 2025, is seeking views on updates to the RTR, including a proposed by-law, draft rules and policy. It follows the consultation held in 2020 on the RTR’s foundational policy framework.

The draft RTR by-law and policy proposals were developed through consultation with members and regulators and stakeholders, and Payments Canada has said that the materials are intended to provide transparency and clarity on the legal and operational framework of the RTR.

“The RTR will enable instant, irrevocable and data-rich payments in Canada, fostering greater competition, innovation and financial control for Canadians,” the association added.

“It is expected to be designated a prominent payment system and meet the Bank of Canada’s risk management standards.”

Serbia Joins SEPA As Balkan Expansion Continues

The European Payments Council (EPC) has approved adding the Republic of Serbia to the geographical scope of the Single Euro Payments Area (SEPA), in a win for the country’s payment service providers (PSPs).

With Serbia’s accession, SEPA’s geographical scope now spans 41 countries, enabling Serbian financial institutions to offer euro payment services under the same conditions as those in the EU.

Practical implementation is expected to begin in May 2026, with Serbian PSPs’ adherence to the SEPA schemes scheduled to start from November 2025.

"Thanks to becoming part of SEPA, our citizens will be able to make payment transactions in euros with SEPA member countries much more efficiently, faster and cheaper,” said Sinisa Mali, Serbia’s finance minister.

“This achievement formally confirms Serbia's compliance with all relevant EU regulations in the field of payment transactions and further strengthens our commitment to the European path,” he added.

“This is the result of the European Union's Growth Plan for the Western Balkans, which aims to accelerate economic convergence with the EU and strengthen regional cooperation.”

The move allows SEPA scheme participants across Europe to send and receive SEPA Credit Transfers (SCT), SEPA Instant Credit Transfers (SCT Inst) and SEPA Direct Debits (SDD) with counterparties in Serbia once the country’s PSPs are fully onboarded.

Serbia is the latest in a growing list of non-EU countries to join SEPA, and the EPC has extended SEPA’s reach to several countries in south-east Europe as part of its plans for the Western Balkans, which are largely in candidate status to join the trading bloc.

North Macedonia and Moldova officially joined SEPA on March 6, 2025, following significant reforms led by their respective central banks.

Montenegro and Albania were added earlier, on November 21, 2024, with PSPs in both countries expected to be operationally ready by October 5 this year.

CFPB's Decision To Vacate 1033 Rule Creates Confusion In US Open Banking

The Consumer Financial Protection Bureau (CFPB) has determined that its own open banking rule, finalised in October 2024, is unlawful and should be set aside, according to a court filing submitted last week.

In a status report filed with the U.S. District Court for the Eastern District of Kentucky, the CFPB and defendant Russell Vought informed the court that the agency’s leadership is on the side of abandoning the incoming compliance requirements.

“After reviewing the Rule and considering the issues that this case presents, Bureau leadership has determined that the Rule is unlawful and should be set aside,” the document reads.

The report was filed in response to a case brought by Forcht Bank, the Kentucky Bankers Association and the Bank Policy Institute challenging the CFPB’s rule under Section 1033 of the Dodd-Frank Act.

The court had previously granted a 60-day stay to allow time for the bureau’s new leadership to review the rule.

As covered by Vixio, on May 14, the court also granted a motion by fintech industry body the Financial Technology Association (FTA) to intervene in the case and stated that the parties should adhere to the existing briefing schedule set in March.

The CFPB filing, which was signed by agency counsel, including chief legal officer Mark Paoletta and assistant general counsel for litigation Christopher Deal, said the bureau intends to file a motion for summary judgment by May 30, the deadline previously set for plaintiffs, “to adhere to the existing briefing schedule.”

FCA Sets Out Plans To Regulate Stablecoins And Reinforce Safeguards

The UK's Financial Conduct Authority (FCA) is consulting on new rules for stablecoin issuance, crypto-asset custody and the financial resilience of crypto firms, as it continues to develop a comprehensive regulatory framework for the sector.

The new proposals from the financial regulator represent a further step in implementing the Labour government’s plans to regulate crypto-assets.

According to the FCA, the changes are intended to support innovation while ensuring appropriate levels of consumer protection, with the regulator saying that it is seeking feedback by July 31 and plans to finalise the rules in 2026.

“At the FCA, we have long supported innovation that benefits consumers and markets. At present, crypto is largely unregulated in the UK,” said David Geale, FCA chief of payments and digital finance.

“We want to strike a balance in support of a sector that enables innovation and is underpinned by market integrity and trust.”

The FCA’s proposals follow draft legislation published by HM Treasury in April 2025.

Although the Treasury does not plan to bring stablecoins into UK payments regulation at this stage, it has indicated that they could play a role in both wholesale and retail payments in the future, depending on adoption and use cases.

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