We want to inform you about new regulations regarding Authorised Push Payment (APP) fraud, a growing type of scam that’s impacting individuals and businesses across the UK. It’s essential that you understand how to safeguard your finances and what steps to take if you become a victim of this type of fraud.
What is APP Fraud?
APP fraud occurs when a criminal deceives you into transferring money to them under false pretences. Often, these scammers pose as legitimate entities, such as government agencies, banks, or even your regular suppliers. Once the payment is made, it can be challenging to recover the funds.
How to Protect Yourself
We are dedicated to helping you stay safe from fraud. Here are some essential precautions you can take:
- Double-check all payment requests: Be cautious, especially with any requests that appear urgent or unexpected.
- Verify the identity of the requester: Contact the person or organisation directly using a trusted phone number or email, not the contact details provided in the message.
- Be wary of unsolicited communications: Avoid clicking on links in unexpected emails or text messages, as they could be phishing attempts designed to steal your information.
What is Covered Under the New APP Fraud Rules?
The new regulations primarily cover consumers using Faster Payments or CHAPS through payment service providers (PSPs) in the UK. You may be eligible to claim reimbursement if you meet the following criteria:
- You hold a current or savings account with a UK financial provider.
- You are:
- An individual
- A charity with annual income below £1 million, as defined by the relevant Charities Acts in the UK
- A micro-enterprise with fewer than 10 employees and an annual turnover or balance sheet under £2 million
To be eligible for reimbursement, the fraudulent payment must have been sent to a UK account via Faster Payments or CHAPS.
What’s Not Covered?
There are some exceptions to what is covered by these rules. Reimbursement will not apply to:
- International transactions
- Fraudulent payments reported more than 13 months after the transaction
- Payments made for illegal purposes (e.g. purchasing illegal items)
- Payments made using a credit or debit card
- Payments to an account you control
- Instances where you were knowingly involved in the fraud
- False claims or disputes over product/service dissatisfaction
- Payments through credit unions, municipal banks, or national savings banks
- Payments where you failed to take reasonable precautions to prevent fraud
Next Steps
If you have any concerns about APP fraud or would like advice on protecting your business, please don’t hesitate to reach out to us at [Your Contact Details]. We’re here to help you navigate these changes and ensure your financial security.
Stay vigilant and take these steps to protect yourself and your business from fraud.
Looking for a Fulham accountant to help you manage your business finances? Reach out to our team today to get started – we’d love to help.
e: office@londonaccountants.co t: 0203 137 9791
Kind Regards,
The Team at London Accountants
