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APP Fraud Reimbursement

New rules from October 2024 mean banks MUST reimburse you.

#At a Glance
Difficulty ā­ Easy
Time to DIY 1 hour
Maximum Payout Ā£85,000
Time Limit 13 months from payment
Escalation Financial Ombudsman Service

#What Is It?

APP = Authorised Push Payment fraud. This is when you're tricked into sending money to a scammer ā€“ you authorised the payment, but you were deceived.

Common scams include:

  • Impersonation ā€“ someone pretending to be your bank, HMRC, or police
  • Purchase scams ā€“ paying for goods that never arrive
  • Romance scams ā€“ fake online relationships asking for money
  • Investment scams ā€“ fake crypto or trading platforms
  • Invoice scams ā€“ hacked emails with changed payment details

From 7 October 2024, Payment Service Providers (banks, building societies, e-money firms) must reimburse APP fraud victims.

#Am I Eligible?

#āœ… You're eligible for mandatory reimbursement if:

  • You made a payment via Faster Payments or CHAPS (covers 99% of UK bank transfers)
  • The payment was made on or after 7 October 2024
  • You were deceived into making the payment
  • You reported it within 13 months
  • You paid from a UK account to a UK account

#āŒ You may NOT be eligible if:

  • You showed "gross negligence" (very high bar ā€“ ignored clear warnings)
  • It was a first-party fraud (you lied to the bank)
  • Payment was to a legitimate payee (dispute is with the merchant, not fraud)
  • International payments
  • Payments made before 7 October 2024 (but still claim ā€“ voluntary code may apply)

#How Much Can I Get Back?

  • Maximum: Ā£85,000 per claim
  • Excess: Banks can apply a Ā£100 excess (they keep the first Ā£100)
  • Timeline: Reimbursement within 5 business days (or 35 days for complex cases)

#Step-by-Step Process

#Step 1: Report to Your Bank IMMEDIATELY

  • Call your bank's fraud line as soon as you realise
  • The faster you report, the better chance of recovering funds
  • Ask them to attempt to recall the payment

#Step 2: Report to Action Fraud

  • Call 0300 123 2040 or report online at Action Fraud
  • Get a crime reference number
  • This doesn't get your money back but creates an official record

#Step 3: Submit a Formal Reimbursement Claim

Write to your bank requesting reimbursement under the PSR's new APP fraud rules. Include:

  • Date and amount of payment(s)
  • How you were deceived
  • Timeline of what happened
  • Any evidence (screenshots, emails, messages)

#Step 4: Chase If Needed

  • Bank has 5 business days to reimburse (or 35 for complex cases)
  • If rejected, request written reasons
  • Escalate to Financial Ombudsman if unsatisfied

#Evidence to Gather

  • Bank statements showing the payment(s)
  • Screenshots of communications with the scammer
  • Emails, texts, or WhatsApp messages
  • Website screenshots (if purchase scam)
  • Action Fraud crime reference number
  • Timeline of events

#What If My Claim Is Before October 2024?

The voluntary CRM Code may still apply. Many banks signed up to reimburse "no-blame" victims before the mandatory rules. The process is the same ā€“ claim from your bank, escalate to FOS if rejected.

#Common Questions

Q: The bank says I was negligent ā€“ what now?

"Gross negligence" is a very high bar. Ignoring a single warning isn't enough. Challenge the decision and escalate to FOS.

Q: I'm embarrassed to admit I was scammed ā€“ will the bank judge me?

These scams are sophisticated. Banks see them daily. Don't let embarrassment stop you claiming.

Q: The scammer used my own bank ā€“ does that matter?

Your bank (sending) handles the claim. The receiving bank must also cooperate under the new rules.

Q: Can I claim for multiple payments?

Yes. Each payment can be claimed. The Ā£85,000 limit applies per claim.