Banks New Fraud Protection Rules From 7 October 2024 - Some Payments May Be Delayed To Check Payments Are Genuine

5th October 2024

New rules for reimbursing victims of authorized push payment (APP) fraud will come into effect in the UK on October 7, 2024. These rules will apply to all UK banks and are intended to improve consumer protection and reduce the financial losses caused by APP fraud.
Here are some of the changes that will take place:

Reimbursement
Banks will be required to reimburse victims of APP fraud up to £85,000 within five business days.

Cost sharing
Both the sending and receiving firms will split the cost of reimbursement 50:50.

Claims
Banks will be able to claim half of the compensation back from the financial institution that received the stolen money.

Fraud prevention
Banks will be incentivized to take action to prevent fraud.

Delaying payments
Banks will be able to delay payments for up to four days if they suspect fraud.

APP fraud occurs when criminals trick victims into sending them money by pretending to be a legitimate company. In 2023, there were 232,429 cases of APP fraud in the UK, with losses of £459.7 million.