Navigating the New UK APP Fraud Regulation

As of 7 October 2024, the Payment Systems Regulator (PSR) has introduced significant changes to how Authorized Push Payment (APP) fraud claims are managed in the UK. Here's a breakdown of what's changed, why this is important, and how Nium is helping to keep your money safe.

What has changed?

The new UK APP fraud regulation is designed to offer greater protection and increase the likelihood of reimbursement for victims of APP scams.

What is an APP Scam?

An APP scam happens when someone is tricked into making a payment to a fraudulent account. The scammer may pose as a legitimate business or individual, deceiving you into thinking you are making a legitimate transaction. APP fraud is a growing issue, with scammers becoming increasingly sophisticated. These scams can affect anyone, from consumers to businesses.

Key details of the new reimbursement rules

1. Eligibility
   You may qualify for reimbursement if:
   
   1. The payment was made via Faster Payments or CHAPS to a UK account after 7 October 2024 from your UK account
   2. The claim is submitted within 13 months of the final fraudulent transaction
   3. You are either an individual, a microenterprise, or a registered charity
2. Timeframes
   1. Valid claims should be reimbursed within five business days of reporting the scam
   2. Some claims may take up to 35 business days if additional information is needed
3. Limits and Excess
   1. As of 25 September 2024, the reimbursement limit is up to £85,000
   2. A £100 excess applies to most claims. For instance, if your claim is for £1,000, you'll receive £900 back

How to protect yourself from APP scams

APP fraud can happen to anyone, but there are steps you can take to reduce your risk:

• Always make payments to trusted companies
• Double-check unexpected requests or calls, even if they appear legitimate
• Look out for spelling mistakes, unusual payment methods, or unexpected pricing

If you’re ever in doubt, contact the recipient directly through trusted channels before making any payments.

How do I raise a claim?

At Nium, we're committed to helping our customers navigate these new regulations and protect themselves from fraud. If you believe you’ve been the victim of an APP scam, we recommend taking these steps:

1. Contact Us Immediately

Notify us as soon as possible. The quicker you report it, the better the chance we can help recover your funds. Get in touch with us directly at [email protected].

2. Always Submit a Claim

Even if your loss is under £100, it's worth submitting a claim via [email protected] as we might be able to recover your money from the account you sent it to. If your loss is above the £85,000 limit and we manage to recover it, we’ll return it to you. Plus, any information about active scams helps us better protect you and other customers.

3. Keep Evidence

Hold onto all documentation related to the scam claim. We assess every case individually and will review all the evidence we receive.

What to expect when you report a scam

When you report a scam, we’ll investigate your case based on the information available to us. We may need to share specific personal details, such as your name or your representatives’ name and account information, with the receiving banks or payment service provider to recover your funds. We will keep you updated throughout the process to ensure transparency.

However, there are situations where reimbursement might not be possible, such as:

• You ignored a warning sign from Nium that the payment could be a scam
• You didn’t follow instructions from the police
• The payment was sent or received through a credit union, municipal bank, or national savings bank
• The scam occurred before 7 October 2024

Help keeping you safe

The new APP fraud regulation is a significant step forward in protecting individuals and businesses from the effects of scams. While Nium has always prioritized the safety of our customers, these changes will ensure that, should the worst happen, you are better protected and more likely to recover your funds.

For any questions, or if you suspect you've been a victim of an APP scam, please contact us directly at [email protected]. We're here to help.