APP Fraud – What Do I Do?

Last week, Shieldpay revealed figures which showed victims of authorised push payment (APP) fraud are receiving only 48% of their money back in compensation.

This has seen victims face a £3billion shortfall in compensation, with 15% of APP fraud victims receiving nothing at all.

This is due to the fact that in May 2019, a voluntary code was introduced to the financial sector, in a bid to offer consumers more protection from APP fraud.

Providing certain stipulations have been met, if your bank is a member of this code, then you’re more than likely to get all of your money back.

However, as this code is only voluntary, some financial organisations (such as Tesco, Monzo and Virgin Money) haven’t signed up to it, meaning that they are under no obligation to refund all of a victim’s stolen money.

How would I avoid bank transfer or APP fraud?

A genuine bank or organisation will never contact you out of the blue asking for your PIN, password in full or to move money to another account. If in doubt hang up, find the phone number of the organisation and call them back. Don’t use the telephone number given to you by the person on the phone

Don’t click on a link in an email or text that you’re not expecting, especially if it is asking you to update bank details

If you receive an email asking you to update your bank details, find the number for the organisation (don’t use the one in the email) and contact them for confirmation the email is from the genuine organisation

Never rush a payment, a genuine organisation will be quite happy to wait if you explain the situation

What should I do if I am a victim of APP fraud?

In the first instance, contact your bank as soon as you realise you’ve been scammed. Your bank will then attempt to get your money back by contacting the recipient bank

If your bank is part of the voluntary code (Contingent Reimbursement Model), and the fraud happened after 28th May 2019, you can try and get your money back., as long as:

You can prove you have taken reasonable care to prevent the loss

The bank deems you weren’t ‘grossly negligent’ when transferring the money, and hadn’t ignored all of the warning signs prompted by the bank prior to the transfer

Who has signed up for the voluntary code?

The following financial institutions have signed up for the voluntary code:

  • Barclays
  • HSBC
  • Lloyds Banking group
  • Metro Bank
  • Nationwide
  • Royal Bank of Scotland
  • NatWest
  • Co-op
  • Santander

It is worth making a note that TSB has their own separate fraud refund guarantee scheme which is completely separate from the voluntary code.