Authorised Fraud Push Payment Fraud Reimbursement - New Law

19th October 2024

How do banks and other payment service providers reimburse victims of authorised push payment fraud?

Authorised push payment (APP) fraud happens when you are tricked by a criminal into sending money by bank payment to an account that they control and which you do not.

Rules have been set by the Payment Systems Regulator (PSR), the body that regulates payment systems in the UK - and only apply to payments made on, or after 7 October 2024.

What is authorised push payment fraud?
Authorised push payment fraud happens when you are tricked by a criminal into sending money by bank payment to an account that they control and which you do not.

You can make a bank payment through online and mobile banking, at your branch or by telephone banking.

Every year thousands of people and businesses are victims of APP fraud. Common types of APP fraud include:

purchase fraud, where criminals pretend to sell things that don't exist.

impersonation fraud, where criminals claim to be someone from a bank, the police or another trusted organisation to steal money.

investment fraud, where you're convinced to move your money into a fictitious fund or to pay for what later turns out to be a fake investment.

romance fraud, when criminals use a fake dating profile to start a relationship with you and then ask for money.

invoice fraud, where fraudsters send false invoices.

If a payment is taken from your account by someone else without your permission, it is called unauthorised fraud. For example, if your bank card is stolen and used to buy something in a shop or online.

There are separate rules for reimbursing unauthorised fraud, including credit and debit card fraud, and you should seek advice in this instance. Contact your bank immediately if you spot any transactions that you do not recognise.

Remember, fraud affects people from all walks of life, and you should never be embarrassed if you have been scammed. Your bank will be there to help you.

This website explains the rules in more detail