New APP Fraud Reimbursement Rules
New rules from the Payment Systems Regulator (PSR) require UK banks and building societies to reimburse victims of Authorised Push Payment (APP) fraud, effective from 7 October 2024.
What is APP Fraud?
APP fraud occurs when someone is tricked into sending money to a fraudster, believing they are paying a legitimate recipient. This includes:
- Invoice redirection scams
- Investment scams
- Romance scams
- Impersonation of bank staff or police
The New Rules
### Key Provisions
- Mandatory reimbursement for most APP fraud cases
- 50/50 cost split between sending and receiving banks
- Claims processed within 5 business days
- Maximum claim limit of £85,000 per claim
- Applies to transfers made via Faster Payments and CHAPS
### Exceptions
Banks may refuse reimbursement if:
- The victim acted with gross negligence
- The victim was complicit in the fraud
- The claim is for amounts above the £85,000 threshold
How to Make a Claim
- Report the fraud to your bank immediately
- Report to Action Fraud
- If your bank refuses to reimburse, escalate to the Financial Ombudsman Service
- For losses above the threshold, contact Patterdale Recovery
Beyond Bank Reimbursement
For losses not covered by the new rules — such as cryptocurrency fraud, international transfers, or amounts above the threshold — professional recovery services remain essential.
