APP Fraud

From 7 October 2024, the Payment Systems Regulator (PSR) is bringing in new reimbursement rules across the industry, to help make sure banks and other payment firms in the UK treat victims of authorized push payment fraud (or APP fraud) consistently.

At Paynetics, our aim is clear – to stop people experiencing the distress and emotional toll of falling victim to fraud – and to stop criminals benefitting.

As of today, the maximum reimbursement limit for eligible and valid APP fraud claims is £85,000. This limit is determined by the PSR and may be updated from time to time. We will ensure this page reflects the most recent changes, so please check back regularly for the latest information.

What is APP fraud?

APP fraud involves scammers tricking individuals or businesses into transferring money to fraudulent accounts, often by posing as legitimate entities or using social engineering tactics. Unlike other fraud types, victims authorize the transfer themselves, typically via online banking or phone, making recovery difficult and often resulting in significant financial loss.

As APP fraud rises, banks and financial institutions are implementing prevention measures. However, individuals and businesses must stay vigilant by verifying the identity of recipients and using secure payment methods.

What should I do if I’ve spotted a suspicious transaction?

If you’ve spotted a suspicious transaction, you should immediately freeze your card and contact us.

If you think your account is at risk, immediately end any type of communication with the suspected scammer. Contact us, and any other financial institution involved. You must also report the incident to the police.

What will we be doing?

If you have an account with Payetics and have an eligible fraud claim, we will:

• Reimburse you with 5 business days, or for more complex cases, this could take up to 35 days;
• Reimburse you up to a maximum of £85,000
• If we reimburse you, we may not pay the first £100 of your claim. For example, for an eligible claim of £450 you’d get back £350. We’ll decide whether to apply an excess by reviewing your personal circumstances, including whether they affect your ability to protect yourself while making a payment

What is and isn’t covered?

These rules apply to the following accounts:

• Personal Accounts (accounts held by individuals, using the accounts for purposes outside of business or trade)
• Business Accounts (with an annual turnover or balance sheet under €2 million (about £1.7 million) and fewer than 10 employees)

The rules cover:

• Bank transfers made on or after 7 October 2024
• Transfers using Faster Payments (FPS) or Clearing House Automated Payments (CHAPS) in the UK.

Exclusions include:

• Card transactions (online or in-person)
• Payments to international accounts, credit unions, municipal banks, and national savings banks
• Payments to accounts you control
• Claims involving misrepresentation or gross negligence
• Fraud reported more than 13 months after the final payment
• Civil disputes (e.g., dissatisfaction with goods/services)
• Payments for illegal items

Transactions made before 7 October 2024 aren’t covered by these rules, but you should report fraud, and we’ll investigate for possible reimbursement. Unauthorized fraud (like card theft) isn’t covered by these rules, but other regulations apply. Please report it, and we’ll try to help.

How can you protect yourself?

While businesses must protect customers’ financial information, you also have a role in preventing APP fraud. By staying vigilant and safeguarding your personal data, they can lower your risk of falling victim to scams.

Here are some ways you can protect yourself against APP fraud:

Verify Requests

You should always verify payment requests, especially if they are unexpected or from unknown sources. You should never rush to transfer money without confirming the request’s authenticity.

Use Secure Payment Methods

Opt for secure payment methods, like card payments or bank transfers that require two-factor authentication. Avoid cash or money transfer services with limited fraud protection and inquire about security measures with any business requesting funds.

Be Wary of Phishing Scams

You should be cautious of phishing scams where fraudsters impersonate legitimate entities to steal personal or financial information. Avoid clicking on links or downloading attachments from suspicious emails or messages.

Protect Personal Information

Safeguard personal and financial details, such as passwords, payment card information, and Social Security numbers, by using strong passwords, enabling two-factor authentication, and not sharing information with untrusted sources.

Keep Software Updated

Regularly update software and devices with the latest security patches and antivirus programs to defend against malware and cyber threats.

By taking these precautions, you can better protect yourself from APP fraud. It’s also vital to report any suspicious activity to us promptly, as this can help prevent further losses and protect others.

How to get more support?

We know being the victim of fraud can be stressful and hard to talk about. You can find more support from:

• Citizens Advice Consumer Service
• Victim Support
• Age UK

As always, if you’re unhappy with your result or any parts of the process, you can raise a complaint with us, using the complaints process. If you are unhappy with the outcome, you can take your complaint to the Financial Ombudsman Service (FOS).