An Authorised Push Payment (APP) scam is when you’re tricked into paying money to someone who isn’t genuine or for a different purpose from what you meant.
These scams can be particularly convincing because fraudsters often impersonate trusted organisations, such as your bank, a service provider or even a friend.
Unlike other types of fraud where someone might hack into your account, with APP scams, you’re the one who authorises the payment. It can be hard to spot the scam until it’s too late, as everything appears to be legitimate at the time of the payment.
You’re now protected by rules from the Payment Systems Regulator to improve consumer protection. They make sure financial companies like us reimburse individuals, microenterprises and charities who are victims of APP scams.
You’ll need to follow all the advice we give you and do everything you can to protect your accounts. Then, we’ll be more likely to be able to reimburse you if you lose money to a scam.
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On 7 October 2024, new regulations for Authorised Push Payment (APP) fraud increased consumer protection in the UK.
Here’s what’s changed:
- Easy reimbursement: You have a stronger chance of getting your money back if you’re scammed into making a payment by Faster Payment or CHAPS. The new rules make it easier to claim a reimbursements if you’re tricked.
- Smarter fraud detection: Banks have upped their game in spotting and stopping fraud before it happens and are more proactive in catching scams.
- Clear warnings: Banks give you better information on how to spot fraud and protect yourself. Expect clear alerts if something looks suspicious when you’re making a payment.
- Easy claims process: It is simple to reclaim your money if you fall victim to fraud, with a straightforward process to track your claim.
- Reporting: Banks will report fraud more thoroughly, which helps keep things transparent and tackles scams more effectively.
Ultimately, these updates aim to make sure you’re better protected and can recover lost funds more easily.
Now, if you make a payment within the UK you may be eligible for a reimbursement if you become a victim of an Authorised Push Payment (APP) scam. This provides some protection in case you’re tricked into sending money to a fraudster.
The new rules apply to everyone using Faster Payments and CHAPs, if they are:
- an individual
- a charity
- a micro-enterprise (fewer than 10 employees and/or a turnover or annual balance sheet of up to £2 million).
If you fall victim to an APP fraud, it’s important to know how to make a claim to help ensure your claim is processed smoothly.
Submit a claim
- Just contact us in the normal way and we’ll explain the process.
Check you’re eligible
- The new rules apply to everyone using Faster Payments and CHAPs, if they are an individual, a charity or a micro-enterprise (fewer than 10 employees / or a turnover up to £2 million).
- The maximum claim for reimbursement you can make is £85,000.
- Claims need to be submitted within 13 months of the final fraudulent payment.
- You’ve been careful and cautious when making the payment.
Understand the exclusions
Claims will not be reimbursed in these cases:
- If you’ve committed fraud or showed a significant degree of carelessness (grossly negligent)
- Payments made before 7 October 2024, or made more than 13 months after the final payment
- Transactions outside the UK
- Payments made via non-bank systems, cheques, or cash
- Payments made to an account you control
- Civil disputes
- Payments through credit unions, municipal banks, or national savings banks.
Protect yourself from Authorised Push Payment fraud by knowing what to look out for and what to do if you think you may have been targeted.
Be cautious
- Be wary of unexpected emails from a business or individual letting you know that their payment details have changed. There is usually a sense of urgency from the fraudster.
- Don’t make any payments without checking via an independently verified source that the payment details you have are correct.
- If something seems unusual, pause and look out for warnings from us or relevant authorities.
Report anything suspicious
If you think you’ve been targeted by a scam, let us know straight away. We’re here to help, and the quicker you tell us, the sooner we can act.
Share information
If we need details to help with our investigation, please provide anything that can assist us in resolving the issue.
Work with authorities
In some cases, we may ask you to cooperate with the police, either directly or through us, to help resolve the fraud.
By staying alert and working together, you’ll be better protected from APP fraud.
- The Financial Ombudsman – advice for making a complaint regarding your reimbursement claim.
- Citizens Advice – impartial advice to understand if you can claim a reimbursement after being a victim of fraud.
- Metropolitan Police – practical advice to avoid being targeted for fraud.
- Age UK – easy-to-understand advice on what to do if you’ve been a victim of fraud.