What is Authorised Push Payment (APP) Fraud?
Authorised Push Payment (APP) fraud occurs when a person or business is tricked into sending money to a fraudster's account. Here, the victim authorises the payment, believing they are sending funds to a legitimate recipient. Unlike traditional fraud, where transactions may be unauthorised or occur without the account holder’s knowledge, APP fraud involves the victim being deceived into willingly initiating the transfer.
How Does APP Fraud Work?
APP fraud often uses manipulative tactics to convince the victim to transfer funds. Common methods include:
- Impersonation Scams: Fraudsters pose as trusted individuals or entities, such as banks, government officials, or company executives, to create a sense of urgency and prompt victims into transferring money.
- Investment Scams: Victims are lured by promises of high returns on investments and persuaded to transfer money into fraudulent schemes.
- Purchase Scams: Fraudsters advertise non-existent goods or services online, enticing victims to pay upfront, only for the promised items never to be delivered.
How to Protect Yourself from APP Fraud
While APP fraud can be sophisticated, there are steps you can take to protect yourself:
- Verify the Recipient: Before making any large payments, verify the recipient’s details through an independent source. Contact the person or business directly using a trusted phone number or email.
- Be Sceptical of Urgency: Fraudsters often create urgency to rush decisions. Take your time to confirm the legitimacy of the request.
- Use Secure Communication Channels: Avoid sharing sensitive information or conducting financial transactions over unsecured or unverified channels.
- Stay Informed: The latest scams are highlighted in the press and on social media, so stay updated as new scams evolve quickly.
- Monitor Your Accounts: Regularly review your bank statements to spot any suspicious activity promptly.
- Report Suspicious Activity: If you suspect that you have been targeted by APP fraud, report it immediately to your bank/building society and the relevant authorities.
The New APP Fraud Reimbursement Scheme
A new APP Fraud Reimbursement Scheme is being introduced in October 2024 to help protect victims of APP fraud by reimbursing the funds lost due to being scammed.
Scope of the Scheme
Starting from 7 October 2024, this scheme applies to all eligible claims from individuals, microenterprises, and charities, where the payment is made using Faster Payments or CHAPS within the UK. The funds must be sent to a relevant account within the UK, defined as an account that can send or receive payments through Faster Payments or CHAPS.
Are There Limits to the Scheme?
- Maximum claim amount: Subject to change and review.
- Claim excess: Potential maximum of £100 per claim.
- Claim submission window: Claims must be submitted within 13 months of the final payment made to the fraudster, otherwise no reimbursement can be made.
Exclusions to the Scheme
Certain exclusions apply to this scheme, such as:
- Gross negligence by the customer, like ignoring warnings or repeated messages from your bank, payment provider, or other parties like the police.
- APP claims before 7 October 2024 or those made more than 13 months after the last payment to the fraudster.
- International payments and payments made through other payment systems.
- Payments via cheques, cash, or those not authorised by the customer.
- Civil disputes (e.g., family or credit card company disputes) or payments involving credit unions, municipal banks, and national savings banks.
How to Raise a Claim and Who to Contact
If you suspect you’ve been a victim of an APP fraud, promptly report it:
- In Person: Visit us at the branch.
- Telephone: Call 01782 255000.
- Email: savingsservices@thehanley.co.uk
Each claim will be assessed individually. Normally, reimbursement occurs within 5 business days, but complex cases may take up to 35 business days. For more details on the claim process or to raise concerns, contact us through any of the provided channels.
Independent Organisations for Help and Support
If you need additional support, the following independent organisations offer free assistance for scam victims:
In Summary
APP fraud is a growing concern in our digital age, preying on the trust and urgency surrounding financial transactions. By staying informed, verifying payment requests, and practising secure communication, you can significantly reduce your risk. If you have any questions, feel free to contact us via the channels provided.
