Authorised Push Payment (APP) Fraud

A big thank you to Hargreaves Lansdown (HL) for the following advice recently sent out regarding Authorised Push Payments fraud. Keep up the great work.

Whilst the following is for HL clients the content is relevant to everyone.

"Autumn can be a busy time of year, and even though we may find ourselves more distracted than usual it’s important to remain vigilant and be mindful of potential scams, including APP.

What is APP fraud?

Authorised Push Payment (often shortened to APP) fraud is where victims are tricked into paying money usually to an account or location controlled by fraudsters.

There are many types of APP scam, including where fraudsters pretend to be a trusted and genuine organisation like the Financial Conduct Authority (FCA), HMRC, law enforcement or the victim’s bank or investment provider, like HL. Often trying to persuade you to make a payment in a hurry, putting on pressure without allowing you the time or space to think, using sophisticated tactics to convince you your funds may be at risk.

New regulation

Up until now there’s been limited protection for victims of APP fraud, but new regulation from the Payment Systems Regulator coming in from 7 October 2024 will change that. As a HL client you could be entitled to be reimbursed for money lost through an APP scam up to ￡85,000 in certain circumstances.?

For example, if you were tricked into sending money to an account belonging to a fraudster, claiming to be a ‘safe account’, you could be reimbursed for your losses.

When the new regulation applies:

• APP scam payments made using Faster Payments and CHAPS in the UK.
• Payments made on or after 7 October 2024. They must be claimed within 13 months of the payment being made to a fraudster.

Claims will be assessed case by case. Exclusions apply which include:

• If you have acted fraudulently yourself (first party fraud) to gain financially or personally
• Where you have acted with gross negligence
• Claims submitted more than 13 months after the final payment to the fraudster
• International payments
• Payments made by other payment systems (not Faster Payments or CHAPS) or by cheque or cash
• Payments made to an account a client controls or payments not authorised by the client
• Payments made for unlawful purposes
• Civil disputes

Spotting the signs of APP fraud – what to beware of

• Phishing communications – beware of unexpected calls, texts or emails. Fraudsters often use this method to begin the scam by impersonating reputable companies.
• Pressure to send payments – if you’re pressured to send a payment or move your savings and asked to do it quickly, this is likely to be a scam.
• Social media - scams offering investments directly through social media messages and adverts are on the rise.?We’ll never approach you in this way.
• Intercepted messages – emails and messages you’re sending and receiving can be intercepted, so look out for anything unusual.
• Security details – never disclose your full security details over the phone. We’ll never ask you for them and it’s unlikely other companies will either.

You can keep up to date with information on our?Security Centre .

What to do if you think you’re a victim of an APP scam

Promptly report it to us if you suspect you have been a target and withdrawn money from your HL account. Please call us on 0117 900 9000 as soon as you become aware of fraudulent activity.?You should also report it to your bank and the police as soon as possible.

Once a claim is reported and if it is found to be an eligible APP scam, we will reimburse losses into your HL account. Reimbursement must be made within five business days, unless further investigation is needed.

We may need to discuss your case, including any relevant personal information, with your bank to help resolve the situation and ask that you engage with us to help with the process. We may also need you to provide further information as reasonably required to help us investigate and resolve the claim.

Further guidance and support:

Get Safe Online are a leading source of up-to-date, straightforward information about online safety. You can find out more on their website here .

Take Five to Stop Fraud offer impartial advice to help everyone in the UK protect themselves from fraud. Find out more?on their website here.

Action Fraud – you can find out more at www.actionfraud.police.uk or get advice/report fraud by calling 0300 123 2040.

Help with the emotional impact of fraud

Falling victim to fraud can have a huge emotional impact as well as being financially crippling. If you need to talk to someone about how you’re feeling, you can contact?Victim Support ?either online or via their support line on 0808 168 9111. You can also contact?The Samaritans on 116 123.

If a scam has left you struggling financially, you can contact the?Citizens Advice Adviceline. They’re available 9am to 5pm Monday to Friday. If you live in England, call 0800 144 8848. If you live in Wales, call 0800 702 2020. If you live in Scotland call 0800 028 1456.