What are APP (Authorised Push Payment) scams?
APP scams happen when someone is tricked into sending money to a fraudster posing as a genuine payee.
There are various types of APP scams which are either;
‘malicious payee’, for example, tricking someone into purchasing goods that don’t exist or are never received.
or
‘malicious redirection’, for example a fraudster impersonating bank staff to get someone to transfer funds out of their bank account and into that of a fraudster.
How do I know if I’m eligible?
Under the new rules, called the Consumer Standard of Caution, you’re expected to take a number of steps before and after making a payment.
You must:
- Follow any specific warnings given by us, the police or another law enforcement agency that advise you that you may be at risk of being a victim of a scam
- Let us know when you think you’ve been a victim of a scam as soon as possible, we won't accept claims for payments made more than 13 months ago
- Share any information we reasonably ask you for to help with your claim
- Report the scam to the police or allow us to report it on your behalf
These rules aren’t required if you’re considered by us to be a vulnerable customer, which has an impact on your ability to avoid the scam.
What's covered?
Payments made using Faster Payments or CHAPS in the UK, up to the maximum value of £85k.
What isn't covered?
- Payments made using cash, a cheque, or a credit, debit, or prepaid card
- Where you have a genuine disagreement with the person or company you’re paying. For example, if you’ve paid a retailer or business but you’re not satisfied with the product or service you received
- APP scams where the final payment to the fraudster was made more than 13 months before you report it
- Payments you’ve made to another account that you control
- International payments
- Payments you’ve made to an account with a credit union, municipal bank, or a national savings bank (a state-owned savings bank in the UK)
- If the payment you made is unlawful. For example, if the payment was for an illegal item
- You’ve acted fraudulently yourself – including if you’ve lied or misrepresented your circumstances for financial gain
- You haven’t met one or more of the measures in the Consumer Standard of Caution. We’ll take your personal circumstances into account and where any personal circumstance has had an impact on your ability to protect yourself from the scam, this won’t impact your claim
Do I have to pay anything?
A £100 excess could apply to any eligible claim you make, meaning you would lose this amount of money if the claim were successful.
We’ll take your personal circumstances into account and where any personal circumstance has had an impact on your ability to protect yourself from the scam, the excess won’t apply.
How long will it take for an outcome to my claim?
If your claim is successful, in most cases, you’ll be refunded within 5 business days.
However, there may be cases where we may need to gather more information relating to the claim which could cause delays.
Is there a limit on the amount of money that can be claimed?
There is a maximum claim limit of £85k. There is no minimum limit that applies.
What do I do if I’m unhappy with the outcome of my claim?
Once you’ve received an answer to your claim, if you’re not happy with the outcome please get in touch with us and we’ll look into your case. We’ll be able to raise a complaint for you if needed.
If you end up not being happy with the outcome of your complaint raised with us, you’ll be able to raise this with the Financial Ombudsman Service (FOS).
You can contact the Financial Ombudsman Service by writing to:
The Financial Ombudsman Service
Exchange Tower
London
E14 9SR
or by calling them on 0800 023 4 567 or 0300 123 9 123