Authorised Push Payment (APP) fraud is where victims are tricked into paying money to an account or location controlled by fraudsters. It’s the most common type of financial scam in the UK, costing the economy roughly £459.7mn in 2023 alone.
There are many types of APP scams, including where fraudsters pretend to be a trusted and genuine organisation like the Financial Conduct Authority (FCA), HMRC, law enforcement, the victim’s bank or investment provider, like HL for example.
The fraudster will often convince the victim their money is at risk, and they need to move it to a ‘safe’ account.
They might even convince the victim to lie to their bank or other organisation about why they’re withdrawing – this is a tell-tale sign of a scam.
Sometimes they’ll even pretend to be someone the victim knows, like a family member or friend, alleging a crisis and asking for money to help.
New changes for APP victims
Up until now there’s been limited protection for victims of APP fraud, but new regulation that comes into play from today, 7 October, from the Payment Systems Regulator will change that.
As a HL client you could be entitled to be reimbursed for money lost through an APP scam up to £85,000 in certain circumstances.
For example, if you were tricked into sending money to an account belonging to a fraudster, claiming to be a ‘safe account’, you could be reimbursed for your losses.
When the new regulation applies:
APP scam payments made using Faster Payments and CHAPS in the UK.
Payments made on or after 7 October 2024. They must be claimed within 13 months of the payment being made to a fraudster.
Claims will be assessed case by case. Exclusions will apply though, which include:
If you have acted fraudulently yourself (first party fraud) to gain financially or personally.
Where you have acted with gross negligence.
Claims submitted more than 13 months after the final payment to the fraudster.
International payments.
Payments made by other payment systems (not Faster Payments or CHAPS) or by cheque or cash.
Payments made to an account a client controls or payments not authorised by the client.
Payments made for unlawful purposes.
Civil disputes.
How to spot the signs of APP fraud – what to look out for
Phishing communications – beware of unexpected calls, texts or emails. Fraudsters often use this method to start the scam by impersonating reputable companies.
Pressure to send payments – if you’re pressured to send a payment or move your savings and asked to do it quickly, this is likely to be a scam.
Social media – scams offering investments directly through social media messages and adverts are on the rise and account for the greatest number of online fraud cases. We’ll never approach you in this way.
Intercepted messages – emails and messages you’re sending and receiving can be intercepted, so look out for anything unusual.
Security details – never disclose your full security details over the phone. We’ll never ask you for them and it’s unlikely other companies will either.
You can keep up to date with information across our Security Centre about the most common threats to be aware of.
What should you do if you think you’re a victim of an APP scam
If you think you’ve been a target and withdrawn money from your HL account, you need to tell us as quickly as you can.
Please call us on 0117 900 9000 as soon as you become aware of fraudulent activity. You should also report it to your bank and the police as soon as possible.
Once a claim is reported and if it’s found to be an eligible APP scam, we’ll reimburse losses into your HL account. Reimbursement must be made within five business days, unless it needs further investigation.
We might need to discuss your case, including any relevant personal information, with your bank to help resolve the situation and ask that you engage with us to help with the process.
We might also need you to give us more information to help us investigate and resolve the claim.
Where can you find more guidance and support
Get Safe Online are a leading source of up-to-date, straightforward information about online safety.
Take Five to Stop Fraud offer impartial advice to help everyone in the UK protect themselves from fraud.
Action Fraud – you can find out more at www.actionfraud.police.uk or get advice/report fraud by calling 0300 123 2040.
Help with the emotional impact of fraud
Falling victim to fraud can have a huge emotional impact as well as being financially crippling.
If you need to talk to someone about how you’re feeling, you can contact Victim Support either online or via their support line on 0808 168 9111.
You can also contact The Samaritans on 116 123.
If a scam has left you struggling financially, you can contact the Citizens Advice Adviceline.
They’re available 9am to 5pm Monday to Friday. If you live in England, call 0800 144 8848. If you live in Wales, call 0800 702 2020. If you live in Scotland, call 0800 028 1456.
The security of your investments and pensions is our top priority. And we’re dedicated to keeping your account as safe and secure as possible.
Our Security Centre keeps you updated with the potential threats that might affect you and your account. We explain some of the measures we take to help keep your details safe and how to protect yourself.
If you’ve noticed any suspicious activity on your HL account or think your account might’ve been compromised, contact us on 0117 900 9000 as soon as possible.