Fraud prevention

Authorised Push Payment (APP) scams, where people are tricked into sending money to criminals, are common. These scams often involve pressure or false payment details.
If you hold a UK account and use the Faster Payment Scheme, starting from 7th October 2024, you will be eligible for reimbursement if you fall victim to an APP scam, as required by new regulations under the Financial Services and Markets Act 2023.

1. Pressure or urgency: Fraudsters may create a sense of urgency to force quick decisions.
2. Requests to pay into new accounts: Be cautious when asked to transfer money to accounts you haven’t used before.
3. Unfamiliar payment details: Payments requested from unknown individuals, or details shared via social media, email, or text, should raise red flags.
4. Changes in account details: Always double-check changes in payment instructions, even from known businesses or contacts.
5. Offers that are too good to be true: Watch out for unrealistic deals, such as cheap goods or unusually high investment returns.

1. Pause and verify: If you’re being pressured to make a payment or receive a request from a new account, take a moment to double-check the details. Call the known contact or company directly using trusted information to confirm any changes in payment instructions.
2. Use Confirmation of Payee: Before making a payment, CoP verifies that the recipient’s name matches the account details (account number and sort code) held by their bank. If the details don’t match, you will be notified to review and confirm or cancel the payment, reducing the risk of fraud.
3. Check for red flags: Review the common indicators of fraud mentioned above. If any of these apply, do not proceed with the payment until you have verified its legitimacy.
4. Report suspicious activity: If you suspect a scam or have been a victim of fraud, report the issue immediately to your Payment Service Provider (PSP). You can also contact the company’s fraud prevention team for guidance.
5. Raise a reimbursement claim: If you believe you have fallen victim to an APP scam, follow the reimbursement process outlined by your PSP. Make sure you understand the eligibility criteria and time limits:
• Eligibility: Applies to individuals, micro-enterprises, and charities when a payment is made via Faster Payments in the UK to a UK account.
• Time limits: Claims must be raised within 13 months of the final payment to the fraudster (starting from 7th October 2024).
• Excess and maximum claim limit: A deductible of up to £100 may apply, with a maximum claim limit of £85,000.
6. Keep records: Always maintain detailed records of all communications, payments, and any related documentation. This will help support your claim in the event of a scam or fraud.

• Vulnerability considerations: If your circumstances have affected your ability to protect yourself from fraud, you may not be subject to standard caution requirements or excess charges.
• Exclusions: Note that not all claims are eligible for reimbursement, such as first-party fraud, international payments, and scams that took place before 7th October 2024.

1. Stay informed: Fraud schemes evolve quickly. Stay up-to-date by reading alerts from your PSP or receiving notifications about the latest scams.
2. Educate yourself and your team: Regularly remind your team and yourself about the indicators of fraud, particularly before making large or unusual payments.

By staying vigilant and following these steps, you can help reduce the risk of falling victim to scams or fraudulent transactions, ensuring that your finances remain secure.