Starting 7th October 2024, we are required to comply with new Authorised Push Payment (APP) scam reimbursement rules. APP scams occur when individuals are tricked into transferring money to a fraudster’s bank account. Under these new rules, victims of APP scams will be eligible for reimbursement, provided their claim meets the specified criteria.
These rules are enforced by the Payment Systems Regulator (PSR), the UK’s payment systems regulator, applicable to banks, building societies, and payment service providers (PSPs) like us. Below is a summary of your rights, eligibility, and guidance on how to claim if you fall victim to an APP scam.
Who Can Make a Claim?
- Eligible claimants include individuals, microenterprises (fewer than 10 employees and a turnover/balance sheet not exceeding €2 million), and charities (with an annual turnover less than £1 million) using a PSP to make APP payments via CHAPS or Faster Payments within the UK.
- Only payments made on or after 7th October 2024 qualify for reimbursement.
- Claims must be submitted within 13 months of the final payment made to a fraudster.
- Once received, we will process eligible claims within 5 working days, unless the ‘stop the clock’ provision is used (explained below).
- Stop the clock provision: The 5-day reimbursement period may be paused while we await additional information from you or another PSP. Regardless, you will receive a final decision no later than 35 working days from the initial report.
- There is a £100 excess applied to each claim, which will be deducted from the reimbursable amount.
- The maximum reimbursement limit for an APP scam is £85,000.
Your Responsibilities
To ensure your claim is successful, you must exercise caution when making push payments, as outlined by the Consumer Standard of Caution:
- You must have followed any warnings issued by us or a national authority, advising that the recipient may be fraudulent.
- You should report suspected APP fraud promptly, no later than 13 months after the final fraudulent payment.
- You must provide us with all necessary information to assess and investigate your claim.
- Report the fraud to a national authority or allow us to do so on your behalf.
Exclusions
Certain scenarios are excluded from reimbursement, including but not limited to:
- False claims made for financial gain.
- Payments made before 7th October 2024 and claims submitted more than 13 months after the last fraudulent payment.
- International payments.
- Civil disputes where the supplier is legitimate, and there is no fraudulent intent.
- Payments made to or received by credit unions, municipal banks, and national savings banks.
How to Make an APP Fraud Claim
- If you believe you’ve fallen victim to an APP scam, contact us immediately. Delays in reporting may affect your eligibility for reimbursement.
- Gather evidence and keep records of all communications with the fraudster.
- We will keep you updated regularly and request any necessary information to support your claim.
- Report the fraud to a national authority, or allow us to do so on your behalf, if required.
We will review each claim on a case-by-case basis, considering your evidence, and any information provided by the receiving PSP or relevant third parties, such as the police.
If you’re unsatisfied with the outcome of your claim, you can use our complaint process, which includes the option to escalate the matter to the Financial Ombudsman Service.
For more information on scams and tips to protect yourself, please visit the Scams and Fraud Awareness section of our website.