APP fraud: what you need to know, and the new rules coming into force
New regulations coming into force from 7 October 2024 will provide extra protection for individuals and small businesses against authorised push payment (APP) fraud.
APP fraud is when someone is tricked into sending a bank payment to a scammer. The victim authorises the push payment to the scammer’s account, which is why it’s been given this name.
The new regulations aim to protect victims, and explain how they can make a claim from their bank or payment service provider to recover any funds taken through APP fraud.
What the new regulations mean for you
If you’ve been a victim of APP fraud, these new regulations will allow you to make a claim for funds that have been taken, and can help ease the financial damage of this type of scam. However, it’s important to be aware that conditions apply, and not all lost funds will be eligible for reimbursement.
The types of scam these regulations apply to
These regulations only apply to APP fraud, and to no other types of fraud. You must be a victim of an APP scam for your case to be considered part of these new regulations, and only money that’s been taken through APP fraud can be reimbursed.
What is authorised push payment (APP) fraud? APP fraud happens when you are tricked by a criminal into sending money by bank payment to an account that’s under their control, rather than yours.
Common types of APP fraud include:
Purchase scams
The scammer acts as a fake seller, and advertises things that don’t exist, such as festival tickets or electrical goods – they might even use fake photos or reviews to make them appear genuine. Once you’ve paid, you never receive your item.
Impersonation scams
The scammer impersonates a legitimate organisation, such as HMRC or your bank, and uses their false identity to pressure you into sending them money. For example, the scammer may say they’re calling from your bank, and you need to move money to another account to keep it safe. In reality, the other, ‘safe account’ is the scammer’s account, and you’re sending your money to them.
Romance scams
The scammer uses a fake dating profile to start an online relationship with you. Once they’ve won your trust, they’ll ask for you to send them money, for example to pay for their plane tickets to visit you. Once you’ve sent the money, you’ll likely never hear from them again.
A scam in which you authorise a payment from your account to a scammer is covered by these new regulations. However, you should still always take care when you make a bank payment. Reimbursement is not guaranteed in all cases and there are specific requirements and exemptions that will apply.
To protect yourself against APP fraud, make sure you always follow these steps recommended by Take Five to Stop Fraud:
- Stop and think before parting with your money or personal information. It could keep you safe
- Ask yourself, could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you
- Do your research and be suspicious of any “too good to be true” offers or prices
- Remember, your bank or any other trusted organisation will never ask you to transfer money to a safe account
What the new regulations apply to
These new regulations cover all UK banks and payment service providers, including Tide, and apply to funds that have been taken via APP fraud on or after this date.
The funds must have been sent by bank transfer from one UK bank account to another by Faster Payments (a quick way of sending money between bank accounts) and CHAPS. You won’t be eligible to make a claim for reimbursement if you’ve sent money to a scammer’s bank account which is outside the UK.
The regulations also only apply to funds lost by either an individual, or a small business with a turnover of less than – or an annual balance sheet total that doesn’t exceed – €2 million a year, and with fewer than 10 employees.
Finally, only funds amounting to £85,000 or less are eligible for reimbursement – so if you lost £100,000 to an APP scam and had a successful claim, a maximum of £85,000 could be reimbursed, minus a £100 excess fee.
What the new regulations don’t apply to
The new regulations only apply to fraudulent payments made between UK bank accounts on or after 7 October 2024. If your claim relates to a payment made before that date, you won’t be able to claim for reimbursement.
You also won’t be able to get your money back as part of the new regulations for payments:
- That haven’t been made by Faster Payments or CHAPS
- That aren’t made within the UK (payments sent overseas aren’t covered)
- Between accounts that are both yours
- That haven’t been made with sufficient care (unless you have proven vulnerabilities)
- That were made in the knowledge that they were fraudulent
- That relate to a civil dispute: for example, you’re trying to get your money back from a genuine seller or retailer because you’re not happy with the goods or services you’ve received
We’ll apply a £100 excess to a successful claim, so if you have a claim for £1000, you’ll be reimbursed £900.
For a full list of exclusions, check our FAQ: ‘What are the exclusions to making a claim?‘
How to make a claim for reimbursement
As well as the above criteria, you need to show you’ve taken certain steps during the payment process in order to have a valid claim.
This forms part of the Consumer Standard of Caution, which explains the reasonable duty of care you need to show towards yourself and your money. The conditions are:
- You need to follow any warnings from your bank, such as an alert that the payment you are making is fraud or could be fraud. You also need to follow any instructions from the police or the National Crime Agency
- You must report the fraud as soon as you can, and no more than 13 months after the last fraudulent payment was made
- Your bank may ask you for additional information about your claim, so you need to make sure you respond to those requests
- Once you’ve made a claim, your bank might ask you to report the details of the fraud to the police, or they may offer to do this for you. You should consent to these steps being taken
We’ll review your claim in line with the steps above to determine whether it’s valid – and whether you’re eligible for reimbursement. Remember, a claim isn’t guaranteed to be successful in all cases.
How to claim reimbursement from your bank
If you’ve been victim to an APP scam, you should contact your bank immediately.
To contact Tide’s Fraud Rapid Response team, call 159 from the UK, or tap Support > Report fraud in your Tide app.
- The sooner you report your case, the sooner it will be looked at. And remember, you need to do this within 13 months of the last fraudulent payment being made, or you’ll no longer be eligible for reimbursement.
- Every claim will be assessed on a case-by-case basis. As part of the process, your bank will consider the evidence presented by you, any service providers involved and – where relevant – a third party, such as the police.
- Most valid claims should be settled within 5 business days. If you need to provide additional information, in some cases it could take up to 35 days to be reimbursed.
- You’ll receive communications from your bank to let you know the outcome. If you’re eligible for full reimbursement from Tide, your funds will show in your account within 2 business days.
Tide will apply a £100 excess deduction from valid claims. There are additional protections in place for customers who, due to their personal circumstances, may be more susceptible to being tricked by criminals.
If you’re only eligible for some of your money to be reimbursed, or none at all, your bank will give you the reasons for this. If you disagree with the outcome, you can always appeal the decision or raise a complaint with us. If you’re still unhappy, you have the option to escalate your complaint to the Financial Ombudsman Service (FOS).
For anything else, or if you have a question we haven’t covered, take a look at our FAQs or tap Support in the app to send us a message. We’ll be happy to help.
