APP Fraud Reimbursement Scheme (UK)

Authorised push payment (APP) fraud occurs when a victim is manipulated into willingly authorising a bank transfer to a fraudster. Until recently, UK banks had no legal obligation to refund such payments because the customer had technically authorised the transaction. Following pressure from consumer groups and a voluntary code introduced in 2019, the PSR made reimbursement mandatory from 7 October 2024 under rules binding all payment service providers (PSPs) participating in the Faster Payments scheme.

Under the scheme, victims are entitled to reimbursement up to GBP 85,000 per claim (reduced from an originally proposed higher cap following industry lobbying). Both the sending PSP and the receiving PSP share equal liability, with each paying 50% of the refund. Claims can be denied where the consumer acted with gross negligence, ignored clear warnings from their bank, or where the consumer was complicit in the fraud. Vulnerable customers receive additional protections and are less likely to have claims denied on consumer-fault grounds.

To make a claim, contact your bank or payment provider in writing explaining what happened and requesting reimbursement under the mandatory APP fraud scheme. Retain all evidence including transfer receipts, communications from the fraudster, and records of any warnings your bank gave. If the bank rejects your claim, you can refer the matter to the Financial Ombudsman Service for free. The PSR publishes a claims decision tree on its website and regularly reviews the scheme's performance.