What is Authorised Push Payment Fraud (APP Fraud)?
An APP scam occurs when a fraudster engages in social engineering to deceive their victims into making payments. Typically, fraudsters will impersonate reputable entities such as financial institutions or even family members.
How does the new consumer protection regarding Authorised Push Payment Fraud (APP Fraud) payment reimbursement work?
From the 7th of October, a new consumer protection regulation introduced by the Payment Systems Regulator (PSR) will be implemented requiring banks to refund customers who have fallen victim to an APP scam.
As of the implementation date, payments made in the United Kingdom (UK) via the Faster Payment Scheme (FPS) and CHAPS Scheme will be covered by the consumer protection regulation.
Clients may be eligible for a refund if they made a payment from their UK account to another UK account for a purpose they believed was legitimate but turned out to be fraudulent, or if they intended to send money to a particular individual but were deceived into sending it to someone else.
If you experience this and would like to request a refund for the transaction, please carry out the following steps:
1) Inform your Private Banker about the suspected fraudulent payment as soon as you become aware of it, but no later than 13 months from the date of the transaction.
2) Provide any information that we reasonably ask for in connection with your claim and allow us to report the fraudulent transactions to legal authorities on your behalf (or report it directly to authorities if we ask you to do so).
To determine whether you are entitled to a full or partial refund, the transaction will need to be investigated. We will consider all relevant circumstances. If we determine you are entitled to a refund, this will typically be processed within 5 working days. As of 7th October 2024, the maximum refund you may receive is £85,000 per claim.
You may not be eligible for a refund if you did not take precautionary measures when sending the payment, or if there were signs indicating that it was a fraudulent transaction (such as ignoring warnings or interventions from Citi Private Bank or relevant authorities that the intended payment was, or may have been, to a fraudster).
For any questions, please contact your Private Banker or email us.
