APP Fraud claims

APP Fraud Claims

What’s covered and how it works if you’ve been scammed

If you’ve been tricked into sending money to someone under false pretences, for example, a fake purchase, scam investment, or impersonation, you may be eligible for a refund under new rules for Authorised Push Payment (APP) Fraud.

These rules are set by the UK Payment Services Regulator (PSR) and apply specifically to Faster Payments (FPS) from 7 October 2024 onwards.

What types of payments are covered?

You can make an APP fraud claim if:

• You’re a retail customer (an individual, not a business)

• The payment was made using UK Faster Payments (FPS)

• The payment went to someone else, not one of your own accounts

• The payment was made within the last 13 months

The maximum refund limit is currently set at £415,000, although it may be reduced to £85,000 later in 2024.

How does an APP fraud claim work?

There are two ways you might be involved in a claim:

1. You received a payment that someone later reports as fraud

In this case, someone else sent money to your account but now claims it was a scam. If their payment provider agrees with them, they may request a refund and the provider of your account may be required to cover part of that refund.

This does not automatically mean you’ve done anything wrong, but your account may be reviewed. If you’re part of a business account or corporate programme, the business may be asked to cover the refund if it can’t be recovered from you.

2. You sent money to someone and were scammed

In this case, you’re the victim. You believed the payment was for something legitimate, a product, service, or investment, but it turned out to be a scam.

If your payment was made using Faster Payments after 7 October 2024, you may be eligible for a full or partial refund. The financial institution that powers your account will investigate and, if the claim meets the criteria, you’ll be reimbursed.

Weavr works with the payment provider and the business that gave you access to your account to make sure your case is handled properly.

When can a provider refuse your claim?

To qualify for a refund, you need to:

• Make the claim within 13 months of the payment (“prompt reporting”)

• Provide requested information to support the claim (“information sharing”)

• File a police report or give your provider permission to do so for you

A claim can be refused only if the payment provider can prove that:

• You were shown a clear, personalised fraud warning

• You understood it and chose to go ahead with the payment anyway

• Your actions showed gross negligence

If no such warning was shown, the provider must uphold the claim.

If you’re considered vulnerable, the bar for denying a claim is even higher.

Who decides the outcome?

Claims are handled between the payment service providers (PSPs) involved, the one who issued your account and the one on the other side of the payment.

Weavr does not directly make claim decisions, but we support the investigation and help ensure fair outcomes.

Summary of key points:

❓Need help?

If you believe you’ve been a victim of APP Fraud:

• Contact Weavr or the business that gave you access to your account

• Provide full details and timelines

• Ask how to begin an APP Fraud claim under the PSR rules