According to a report by the Payment Systems Regulator, over 250,000 cases of Authorised Push Payment (APP) fraud were reported in 2023.
The number of people who lost money to scammers from their bank accounts last year rose by 12% compared to the previous year. According to the Payment Systems Regulator report, victims of APP scams reported 252,626 cases in 2023, totalling almost £341 million.
What is APP Fraud?
+ −Authorised Push Payments (APP) are an easy way to transfer money quickly. Simply add a recipient’s bank details, the amount to be paid and a brief reason (often from a drop down list) and the money is sent almost immediately via the Faster Payments Scheme (FPS). Unfortunately this can lead to the most common type of fraud in the UK where scammers convince people to send large amounts of money under false pretences.
APP fraud relies on social engineering and deception, including:
- Impersonation scams – this is when fraudsters pretend to be a well-known brand or business to win a victim’s trust
- Purchase scams – victims purchase goods or services that don’t exist or are never sent
- Romance scams – through online dating apps, the scammer begins a relationship with their victim and then requests money, usually using emotional blackmail
- Investment scams – scammers convince victims to invest money with false promises of high or guaranteed returns
Scammers persuade their victims using cunning tactics to urgently or regularly transfer money from their bank accounts. Unfortunately, the Faster Payments Scheme also allows scammers to move money quickly to another, often overseas, account, making it extremely difficult to trace and recover. APP Fraud can result in huge financial losses for the victims.
The Payment Systems Regulator’s Findings
+ −The Payment Systems Regulator reports the latest figures of UK Authorised Push Payment (APP) scams and customer refund data, and for 2023 found that:
- More than 252,000 cases of Authorised Push Payment scams occurred, worth about £341 million, where people lost money from their accounts to fraudsters posing as genuine payees
- The volume of bank transfer scams increased by 12% to 252,626 from 2022, but the total value fell by 12% to £340.65 million in 2023
- 67% of the money lost to APP bank transfer scams was reimbursed in 2023
The report included reimbursement data from 14 of the largest banks in the UK and 11 smaller firms in the top 20 of the highest fraud receivers. It highlighted that victims’ compensation still depends on which bank they are customers of.
- Lender Nationwide fully reimbursed 96% of the APP scam cases, followed by TSB, which fully reimbursed 95%
- The report said Barclays fully reimbursed 82% of cases, adding that only 3% of cases reported to AIB were fully refunded
New compensation rules will be introduced on 7 October this year. All UK service providers will be required to compensate their customers who become victims of APP fraud.
What to do if you’ve been a victim of Push Payment Fraud
+ −If you think you have been scammed, it is essential to advise the police and your bank urgently. You can also report any suspected scamming activity to Action Fraud, the National Fraud and Cyber Crime Reporting Centre. If you have lost money, that may lead to a criminal investigation by the police.
The process will involve your bank conducting an initial investigation, and you may be eligible for a refund. A refund may not be possible if the scammer has already transferred the money elsewhere and it cannot be traced. If you have lost money through a push payment scam and your bank is not prepared to refund you, you can take this further with the Financial Ombudsman Service (FOS). FOS is an independent, government-backed body responsible for investigating and resolving disputes between financial services institutions (such as banks) and their customers. It can award compensation if it finds a bank has failed to protect a customer from APP fraud.
Banks have a responsibility to protect you and your money, so if your bank fails to take the appropriate steps to safeguard your money from fraud, you may be eligible to make a refund claim.
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director and Head of the APP fraud team at TLW Solicitors commented on the data recently reported by the Payment Systems Regulator:
“Even though the value of APP fraud fell in 2023, the 12% rise in scams is concerning and suggests that more people than ever are affected. The report highlights the increasing problem of APP fraud in the UK, and I strongly advise anyone to be vigilant when purchasing, investing or transferring money online.
“If you or anyone you know is in the unfortunate situation of being scammed, don’t feel embarrassed or ashamed, you are not alone, and help is available. Get in touch with my specialist team. We can assess your case and file a complaint directly with your bank, or if they refuse to refund, we can take your case to FOS.”
TLW Solicitors can help
+ −If you or someone you know has been the victim of an APP scam, contact our team today for a confidential, no-obligation conversation to explore your options.
We have a specialist, dedicated APP Fraud and Bank Negligence team. We understand the time limits and processes involved, and we can handle complex legal arguments that might arise.
We work on a no-win, no-fee basis and can offer you a no-obligation assessment of your refund case.
Please call us on 0800 169 5925, email info@tlwsolicitors.co.uk, or use one of the contact forms below.
Getting advice as soon as possible is important, as strict time limits can apply.
Minimum case values apply.
Meet Our Team
Meet Sarah, who heads up our experienced Authorised Push Payment Fraud Claims team.
Sarah and her colleagues are on hand to help with your claim.
