Authorised Push Payment (APP) scams

From 7th October 2024 there are new rules to reimburse people that fall victim to Authorised Push Payment (APP) scams.

APP scams, also known as bank transfer scams, trick you into sending money to a fraudster pretending to be from a legitimate business, such as from your bank/ building society, HMRC or a delivery company. 

For example, they might text, email or phone you, claiming that you owe them money or are due a refund and encourage you to transfer money to a 'safe' account or click on a link within a text or email to obtain your personal and/or financial details.

According to UK Finance, £459million was lost to APP scams last year and continues to grow as one of the most common. Whilst £287.3 million of APP losses was returned to victims in 2023 more is being done to help stop these scams and protect those that do fall victim.

What are the new rules?

How do I get reimbursed if I'm a victim of an APP scam?

How can I protect myself against fraudsters?

Where can I find more information?

 

What are the new rules? 

From 7th October 2024 consumers are protected by new rules from the Payment Systems Regulator which seeks to refund victims of APP scams.

What's covered?

• You can get reimbursed for Faster Payments and CHAPS up to a maximum of £85,000 per claim*
• The payment was made by Faster Payment and CHAPS within the UK
• The claim must be made within 13 months of the scam and occurred on or after 7th October 2024

 

* However, this is different from the maximum claim level for claims to the Financial Ombudsman Service. You can find the compensate limits here: Financial Ombudsman Service: Understanding compensation – Financial Ombudsman service (financial-ombudsman.org.uk)

 

What's not covered?

• Payment made by cash, cheque or card (not applicable at The Cambridge anyway)
• There's gross negligence or first party fraud on the part of the Consumer
• International payments

 

How do I get reimbursed?

If you think you've been scammed, report it to us as soon as you are aware. Email us at appreports@cambridgebs.co.uk, call us on 0345 601 3344 or pop into one of our branches. We'll investigate your fraud claim and let you know the outcome as quickly as possible.

You may have to pay an excess of up to £100 per claim, except in circumstances where the consumer is assessed as being vulnerable. We will consider each claim on a case by case basis and any excess will be subtracted from the reimbursement amount.

If your claim is successful, we'll reimburse you within 5 business days of a successful claim.

 

How can I protect myself against fraud?

There are a few things you can do to protect against scams and fraud:

• Keep your personal details - personal. Someone from HMRC, your bank or a trusted authority will not call you to verify your personal details, including your bank details, pin and password, over the phone, via a text or by email.
• Are you expecting a call from this person/company? Get them to identify their identity. Find their direct telephone number (from the internet, or previous letter) and call them back on that number.
• Never feel pressured into making a payment and be sure to ask questions to ensure you feel comfortable before making any payments or giving any details. If in doubt, ask a trusted person. Genuine people won't mind waiting whilst you seek reassurance
• There's more information on protection against fraud and scams on Action Fraud website and gov.uk websites

 

Want to know more?

You can find more information on Authorised Push Payments and reimbursements on the Payment Systems Regulator Website and Pay.UK

 

*Consultation on setting the maximum amount of compensation at a reduced level of £85,000, in line with the maximum level of compensation under the Financial Services Compensation Scheme.