What is Authorised Push Payment (APP) Fraud
APP fraud happens when scammers trick you into making a payment to a fraudulent account. Unlike other types of fraud, you authorise the transaction yourself—usually because the scammer poses as someone you trust, like your bank, a business, or even a family member.
From 7 October 2024, new rules from the Payment Systems Regulator mean financial firms must refund customers who fall victim to APP scams. These protections are designed to give you greater peace of mind when making payments.
Common APP Scams
There are many different forms of APP scams, we’ve listed some below which might be relevant:
Impersonating your bank
Bank impersonation scams happen when fraudsters pretend to be your bank to trick you into revealing personal information or transferring money. These scams often start with a phone call, text, or email that looks official, making it easy to fall for the deception
Stay safe: Never share personal details; we will never ask you to transfer your money elsewhere (or within the bank) or call you out of the blue. Those are immediate red flags you should watch for.
Invoice Fraud
Invoice fraud is a scam where criminals trick individuals or businesses into paying fake invoices or sending money to fraudulent accounts. It often happens when fraudsters impersonate a trusted supplier or service provider and request payment to a new bank account.
Stay safe: verify the payment request with a trusted contact method, check the invoice carefully; look for inconsistencies such as account details, emails or formatting.
Investment Scams
Investment scams are fraudulent schemes designed to trick people into handing over their money with promises of high returns and little risk. These scams often look professional and convincing, making them difficult to detect
Stay safe: Search the FCA register (Financial Services Register | FCA ) to make sure the company is legitimate. If an opportunity sounds too good to be true, it probably is!
Where can I get more information?
Take Five is a national campaign offering straight-forward, impartial advice that helps prevent email, phone-based and online fraud – particularly where criminals impersonate trusted organisations.
There is plenty of information for consumers and businesses on their website
The Team at Which? also have a comprehensive guide which can be found on their website: What to do if you’re the victim of a bank transfer (APP) scam - Which?
What is covered under the new rules?
- Individuals, microenterprises and charities
- Payments made within the UK
- Payments made using Faster payments or CHAPS
- Claims up to a maximum of £85,000
- The claim must be made within 13 months of the scam and have occurred on or after 7th October 2024
In most cases we will aim to make a decision within 5 business days of you making the claim, however if we require additional information then the process can take up to 35 business days.
What is not covered under the new rules?
- International payments
- Payments made using cash, cheque, credit, debit or prepaid card
- Payments made for unlawful purposes, such as purchasing illegal items
- Payments where you have made a false claim
- Payments made where you have been complicit in the fraud or grossly negligent
- Payments you’ve made to an account with a credit union, municipal bank, or a national savings bank
The Consumer Standard of Caution
Under new rules set by the regulator, you are expected to take certain steps to protect yourself, before and after a payment. These are:
Follow advice and warnings provided by your Bank or law enforcement such as advice on checking that your payment is genuine
Report the fraud as soon as you can, noting that the report must be made within 13 months after the fraudulent payment was made
Promptly respond to any requests for additional information to support us with the assessment of the claim
Report details of the fraud to the police
How to make a claim after APP Fraud
If you’ve been pushed to make a fraudulent payment from your Redwood Savings Account, please contact us on 0330 053 6067 Monday to Friday 9am to 5pm, alternatively you can email us at bankingoperations@redwoodbank.co.uk