The Payment Systems Regulator (PSR) has said it will scale back mandatory fraud compensation despite a surge in APP scams.

The Payment Systems Regulator (PSR) has confirmed it intends to slash the maximum amount of fraud compensation banks and payment providers will have to pay out to scam victims.

Under its original plans, which were set to come into force from 7 October, the PSR was going to bring in a mandatory pay-out limit to reimburse the losses of Authorised Push Payment (APP) fraud victims. This maximum would have covered any losses up to a total of £415,000.