We can help you to spot and avoid scams. If you believe you may have been the victim of fraud, please contact us immediately on 0800 032 0480

APP scams occur when individuals are deceived into transferring money to fraudsters posing as legitimate payees.

This type of fraud differs from others where criminals gain unauthorized access to accounts and withdraw funds without the account holder’s awareness. APP scams are often executed by creating a sense of urgency, pressuring the victim to act quickly without sufficient time to evaluate the situation. Below, we outline some common APP scams to be aware of.

New Rules for APP Scam Claims

From 7 October 2024, new regulations will apply to victims of Authorised Push Payment (APP) scams. These rules affect transactions involving UK accounts through:

• Faster Payments – a method for transferring money electronically almost instantly
• CHAPS – a type of same-day transfer frequently used for significant amounts

Key changes under the new rules include:

• A maximum claim limit of £85,000
• A possible deduction of £100 as an excess from any claim
• Reimbursement within a maximum of 35 business days if the claim is deemed eligible after contacting us
• Our terms and conditions will reflect these updates by 9 April 2025.

What to Do If You Suspect a Scam

If you suspect that you’ve been targeted by an APP scam, it’s crucial to contact us immediately at 0800 032 0480. We will assess the case based on the information you provide, as well as details from the bank that received the funds and, if necessary, other relevant parties like the police. For investigation purposes, we might share your details with the receiving bank or the authorities.

Scenarios Where Reimbursement May Not Apply

Certain situations might exclude you from being eligible for reimbursement under the new rules:

• If the payment was made to another account that you control
• If the transaction involved accounts outside the UK
• When the required information to assess your claim hasn’t been provided
• If the payment wasn’t authorized (different rules apply to unauthorized transactions)
• In cases of civil disputes with the recipient
• If you ignored warnings from us or the authorities about a likely scam
• If we have reasonable grounds to suspect fraud on your part
• If you didn’t promptly report the suspected scam to us
• When more than 13 months have passed since the last scam payment

Please note, the new regulations do not apply to payments:

• Made before 7 October 2024
• Processed using debit or credit cards, checks, or cash
• Sent to or from non-UK accounts
• Involving accounts with specific financial institutions such as credit unions, municipals, or national savings banks

Even if your situation falls outside these guidelines, we will still investigate, and you might still be eligible for reimbursement. Therefore, it’s essential to report any suspicious activity.

Common Types of APP Scams

There are various types of APP scams, some of which fall under the new rules, while others may not. Regardless, we encourage reporting all suspected scams for further investigation.

• Invoice and Mandate Scam: This scam involves the victim attempting to pay a legitimate invoice. The fraudster intercepts or manipulates the payment, redirecting it to an account they control. This type often targets individuals or businesses by posing as suppliers and claiming account details have changed.
• CEO Fraud: In this scam, criminals impersonate a company’s CEO or another senior executive to trick employees into making urgent payments to their accounts. This fraud primarily impacts businesses.
• Impersonation Scam (Police or Organizations): Fraudsters pretend to be from the police or a bank and persuade the victim to transfer money to a ‘safe’ account. They might also claim to be from a utility company or government department, asking the victim to pay fines, taxes, or other fees.
• Impersonation Scam (Family or Friends): Here, the scammer pretends to be a relative or friend, often asking for money under false pretences via social media or messaging apps.
• Purchase Scam: The victim pays upfront for goods or services that are never delivered. These scams usually occur on online platforms like auction sites or social media.
• Investment Scam: A criminal convinces the victim to invest in a fake fund, promising high returns. Fraudulent investments might include gold, real estate, cryptocurrencies, and more.
• Romance Scam: Fraudsters create fake profiles on dating sites or social media, building relationships over time to gain the victim’s trust. They then request money to solve a fabricated issue, such as medical expenses or travel costs.
• Advance Fee Scam: The victim is tricked into paying a fee for a supposed large payout, such as lottery winnings or inheritance. After the fee is paid, the promised funds or goods never materialize.

If you’re concerned about scams or want to learn more about how to protect yourself, please visit our fraud awareness page.