Currently, over three quarters of bank customers have failed to win reimbursements from banks after falling victim to APP fraud, despite a voluntary code of practice that promises refunds in ’no blame’ cases.

The latest proposals from the PSR would put mandatory reimbursement "in all but excetional circumstances" in place for all online and mobile payments. The watchdog also wants banks to improve the level of protection for APP scam victims and incentivise banks and building societies to prevent APP scams.

The PSR says it wants to see the requirements for mandatory reimbursement in place for consumers "as soon as possible", although this awaits the p[assing of legislative changes under the Government’s Financial Services and Markets Bill.

Chris Hemsley, managing director at the PSR states: “Fraudsters have continued to devastate the lives of innocent victims through APP scams. We want to see all banks, building societies and other payment providers doing more to prevent APP scams from occurring in the first place. These proposals will mean everyone has more protection from scams. Our proposed rules will see everyone benefitting from strong protections, regardless of who they bank with.”