.png)
APP fraud occurs when a criminal tricks you into authorising a bank transfer to their account, usually by impersonating someone you trust, such as your bank, a legitimate company, or even a family member. Since you’ve “authorised” the payment, getting that money back used to be tricky, with many banks only refunding under the voluntary CRM code.
From October 2024, the rules change. Now, with the PSR's mandatory framework, banks must follow the same process for reimbursing victims.
Eligibility Criteria: Can You Get Your Money Back?
To qualify for a refund under the new framework, your case needs to meet these criteria:
Date of Payment:
The transfer must have been made on or after October 7, 2024.
Timely Reporting:
You need to report the fraud to your bank within 13 months of the transaction.
Payment Type:
Only bank transfers via Faster Payments or CHAPS are covered.
Account Type:
The payment must involve a UK bank account belonging to an individual, microenterprise, or charity.
If you’ve made several payments to the fraudster, don’t worry—you can combine them all into one claim.
Exclusions: When You're Out of Luck
As comforting as this new safety net is, it’s not foolproof. There are still instances where you won’t qualify for reimbursement. These include:
Ignoring the rules:
If you don’t follow the Consumer Standard of Caution (more on that later), your claim will be rejected.
Illegal activity:
If your payment was for something unlawful—say, a shady deal gone wrong—don’t expect any sympathy (or money) back.
Civil disputes:
If you’re unhappy with a product or service and want a refund, that’s not APP fraud. Sorry.
Payments to your own account:
Sending yourself money and then regretting it doesn’t count as fraud either.
Certain types of accounts:
The rules don’t apply to credit unions, municipal banks, or national savings accounts.
Dishonest claims:
Making a false claim could land you in even bigger trouble. Be honest, it’s the best policy.
Maximum Reimbursement: How Much Could You Get?
The most you can receive under the new rules is £85,000. This cap offers considerable protection, though it might not fully cover some larger losses.
The Consumer Standard of Caution: Your Responsibilities
To be eligible for a refund, you need to demonstrate that you’ve been reasonably cautious. The Consumer Standard of Caution includes:
Heeding warnings:
If your bank or law enforcement gives you a scam warning, take it seriously.
Reporting quickly:
Contact your bank immediately if you suspect a scam. The faster you act, the better.
Providing information:
Cooperate fully when your bank asks for details.
Reporting to authorities:
You must report the scam to the police or allow your bank to do so.
Call to Action: Seek Professional Legal Advice
APP fraud can leave you feeling vulnerable and unsure of your rights. Whether you’re dealing with a fraud claim or want to ensure you’re fully protected, professional guidance can make all the difference.
Contact Law Clinic
For advice on navigating APP fraud claims and understanding your rights under the new mandatory reimbursement framework. Don’t wait until it’s too late—safeguard your finances and get the support you need today.
Comments