What are APP Scams

 

With online banking and payment apps being a big part of our daily lives, they bring both convenience and some new risks. One of these risks is called an Authorised Push Payment (APP) scam.

 

APP scams happen when a scammer tricks you into willingly sending money to their account. This usually occurs when you think you are paying for something legitimate, like goods or services, but it is actually a scam, and the items will never arrive.

 

Always be cautious when making payments to new accounts, updating payment details, or dealing with people you have met online, especially if you are being pressured to pay quickly.


Right to be reimbursed for an APP scam

 

If you fall victim to an Authorised Push Payment (APP) fraud, you have the right to be reimbursed under certain conditions. It’s important to understand your rights, the scope of the reimbursement process, and what is required from you.


Payments in Scope

 

You will be eligible for reimbursement if the payment you made meets all the following criteria:

  • Who Can Be Reimbursed: Individuals, microenterprises, and charities are eligible.
  • Type of Payment: The payment must be made using Faster Payments or CHAPS in the UK.
  • Where the Payment Was Sent: The payment must be sent to a UK account that you, as the payer, do not control.
  • Conditions for Reimbursement:
    • The payment was authorised by you but did not go to the intended recipient, or
    • The payment was made for a different purpose than you intended.


What You Need to Know and Do

 

Under the consumer standard of caution, you are expected to:

  1. Follow Guidance: Pay attention to any warnings about different types of scams and recommendations relating to specific payments, taking precautions where required.
  2. Report Scams Promptly: As soon as you suspect or become aware of a scam, report it to us immediately – we may be able to freeze funds or request other companies to do so.
  3. Provide Necessary Information:  You need to provide details about what happened. This information is vital for processing your claim.
  4. Cooperate with Law Enforcement: Report the scam to the police or consent for us to do so on your behalf, as this supports the investigation and your claim.

By adhering to these steps, you protect yourself and help ensure a smooth reimbursement process.


Time limits

 

  • We will only reimburse payments made on or after 7 October 2024.
  • You must submit your claim within 13 months of making the last payment to the fraudster involved in the scam.


Claim excess

 

We will apply a £100 excess (deductible) to your claim.


Maximum claim limit

 

The maximum amount we will reimburse for a claim is £85,000.


Vulnerability Considerations

 

If you are considered vulnerable and this vulnerability affects your ability to protect yourself from the scam, the consumer standard of caution and the claim excess do not apply.


Exclusions to the reimbursement requirement

 

  • First-party fraud;
  • Gross negligence: if the consumer standard of caution was neglected;
  • Time exclusions: Claims made before 7 October 2024 and APP claims submitted more than 13 months after the final payment to the fraudster;
  • International payments: Payments made outside the UK;
  • Payments Using Other Systems: Payments that occur across other payment systems, or using cheques or cash;
  • Unauthorised Payments: Payments made to an account you control, or that were not authorised by you;
  • Civil disputes;
  • Payments Involving Certain Institutions: Payments sent to or received by credit unions, municipal banks, or national savings banks;

 

How to raise a claim

 

To raise a claim, you can contact us at the following address: (app@moorwand.com ).

  • The assessment of your scam claim should generally be completed within 5 business days.
  • If additional information is required from you or other involved Payment Service Providers, the timeframe may be extended, but the final assessment will be completed within 35 business days from the date you raised the claim.
  • You will be informed and updated if the timeframe is extended.

 

If you are dissatisfied with the outcome of your claim, you may follow the existing complaint process or escalate the matter to the Financial Ombudsman Service (FOS).

 

When raising a claim for an FPS APP scam, it’s important to include the following details to ensure your claim is processed efficiently:


Information to Include in Your Claim

  1. Account information:
  • Provide the sort code and account number of the account from which the payment(s) was made.
  • Provide the sort code and account(s) number of the account to which the payment(s) was sent.
  1. Amount of the scam: Please include the amount of all APP scam payments.
  2. Scam Description: Clearly explain what happened, including who you believed you were paying and why you made the payment. Describe how you were deceived and the circumstances leading to the scam.
  3. Payment Purpose: State the intended purpose of the payment, such as buying goods, investing in a scheme, or other purposes.
  4. Communication with the Scammer: Provide details on any ongoing communication with the scammer, including whether you’re still in contact.
  5. Supporting Evidence: Include any documentation that supports your claim, such as emails, messages, screenshots, or transaction confirmations, which demonstrate that the payment was not intended for the recipient who ultimately received it.
  6. Any additional information.

By providing this information, you help us assess your claim accurately and increase the likelihood of a favourable outcome.

 

How can you protect yourself

 

Here are some tips to help you stay safe from potential scammers:

  1. Keep Your Details Private: Never share sensitive information like your PIN, passwords, or full banking details with anyone, even if they claim to be from a trusted organisation.
  2. Be Sceptical of Unexpected Requests: If you receive an unexpected request for money or personal information, always verify the identity of the person or organisation contacting you. Use trusted contact information rather than what they provide.
  3. Verify Payment Details: Before sending any money, double-check the account details you are transferring to. If you’re making a large payment, especially to a new recipient, it’s worth calling the recipient using a trusted number to confirm their details.
  4. Look for Red Flags: Be cautious if someone pressures you to act quickly or threatens negative consequences. Scammers often create a false sense of urgency to trick you into acting impulsively. Remember to stop and take time to carefully consider your actions. A genuine bank or some other trusted organisation won’t rush you or mind waiting if you want time to think.
  5. Be Sceptical of Unsolicited Offers: If someone offers you an investment that seems too good to be true, it probably is. Make sure to do your own research on the company or person and talk to a financial advisor before investing.
  6. Stay Informed: Fraudsters often use the latest news or trends to create scams. Stay updated on common fraud tactics and regularly review our advice to stay one step ahead of fraudsters. Below you will find links to organisations that can help and provide useful information about various scams.
  7. Report Suspected Scams: If you suspect you have been a victim of an APP scam, contact us immediately to report the issue and seek further guidance. Acting quickly can help stop further losses and assist in investigating the scam.

We encourage you to test your ability to spot a scam by trying the quiz provided by Take Five.

https://quiz.takefive-stopfraud.org.uk/

Take Five is a national campaign that provides clear and unbiased advice to help you protect yourself from financial fraud. This includes scams via email, phone, and online, especially when criminals pretend to be trusted organisations.


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