Authorised Push Payment Scams

New rules for APP scams

New regulations have come into force concerning Authorised Push Payment (APP) scams, which will impact eligible customers starting from 7 October 2024. These new rules are designed to help protect your money and provide a reimbursement path if you fall victim to an APP scam.

What is an APP Scam?

An APP scam occurs when you are deceived into authorising a payment to an unintended recipient or for a purpose other than what was initially agreed. The scammer persuades you to transfer money to an account outside your control.

Does This Apply to You?

These rules will apply to eligible customers, which include:

  • Consumers
  • Micro-enterprises (fewer than 10 employees with either an annual turnover or balance sheet total not exceeding €2 million or the sterling equivalent)
  • Small charities, defined by the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, or the Charities Act (Northern Ireland) 2008, with annual income under £1 million.

New APP Scam Reimbursement Rules

From 7 October 2024, new rules take effect for eligible customers who experience APP scams and request reimbursement.

Key details include:

  • The maximum reimbursement you can claim is £85,000 per incident.
  • An excess of £100 may be deducted from your claim.
  • If your claim is successful, reimbursement should be processed no later than 35 business days after you file the claim.

When You May Not Be Entitled to Reimbursement

Certain conditions may disqualify you from receiving reimbursement under the new rules, including:

  • The payment was made to an account you control.
  • The payment was sent to an account outside the UK.
  • You ignored warnings from the bank or the police indicating the payment was likely to be a scam.
  • The payment occurred more than 13 months ago.
  • You acted fraudulently or failed to report the scam promptly.

Other Considerations

These new rules do not cover payments made before 7 October 2024, international payments, card payments, cheques, or payments involving credit unions, municipal banks, or national savings banks. However, even if a scam doesn't fall under these new rules, it’s crucial to report it as it may still be investigated and potentially provide a refund.

If You Think You've Been Scammed

It’s vital to report any suspected scams as soon as possible. Even if the scam doesn’t meet the criteria outlined in the new rules, your provider should still investigate the situation, and you may still be entitled to a refund.