Authorised Push Payment Scams

What is an ‘authorised push payment’ scam?

An authorised push payment (APP) scam, also known as a bank transfer scam, occurs when you – knowingly or unwittingly – transfer money from your own bank account to one belonging to a scammer.

For example, a scammer pretends to be from your bank’s fraud team and warns that you need to move your money to a safe account but it’s actually an account the fraudster controls.

For more examples of Authorized Push Payment Fraud please click here

If you’re too embarrassed to tell anyone about what’s happened to you, you should know that £1.2bn was lost to fraud in 2018 so you’re far from alone.

Scams are more complex and convincing than ever – people of all ages and backgrounds can unfortunately fall victim to scammers’ manipulations.

Types of complaint we see

The range of complaints we see is constantly evolving as fraudsters develop new and increasingly clever methods. These often rely on highly manipulative techniques known as “social engineering” to trick the customer into parting with their cash or sharing confidential information. In other instances, the customer tells us that details of their card, banking or identity were obtained and used fraudulently. Sometimes customers simply have no idea how the fraudster got so many of their personal details.

Plastic-card transactions that the customer tells us they didn’t make or authorise – such as purchases of goods or services online or in stores or nightclubs.

Scams where the customer was tricked into handing over their bank details, allowing the fraudster to take money from their account without their consent.

Scams where the customer was tricked into transferring money to the fraudster’s account – often because they believed they were making a payment to their bank or another trusted organisation.

Victims of authorised push payment (APP) fraud covered under voluntary code until 30 June 2021 as agreement extended.

Nine banking groups are signed up to the code including the major UK banks and challengers like Metro Bank.

This extension is the third so far, with legislation still to be put forward for a long-term and sustainable funding model.

Figures from UK Finance show only 38% of losses assessed under the voluntary code were reimbursed in the first half of 2020.

Further extension

Until 30 June 2021, victims of APP fraud may receive full reimbursements of any money lost due to a scam.

Seven banking groups have agreed to continue funding the code until then: Barclays, HSBC (including First Direct and M&S Bank), Lloyds Banking Group (covering Lloyds Bank, Halifax, Bank of Scotland and Intelligent Finance), Metro Bank, Nat West Group (covering Royal Bank of Scotland, NatWest and Ulster Bank), Nationwide, and Santander (including Cahoot and Carter Allen Limited).

The Co-operative Bank is also a signatory, operating a self-model to reimburse customers, while Starling Bank covers customers in situations where both the customer and their payment service provider meets the required standards in the voluntary code.

TSB have their own Fraud Refund Guarantee which launched in April 2019.

If you have been targeted by an APP scammer then please contact us as soon as possible