Authorised Pushed Payments Fraud

What is an Authorised Push Payment (APP) Scam?


Unlike other forms of fraud where criminals secretly access accounts and steal money without the account holder’s awareness, APP fraud involve fraudsters pressuring you to act quickly and convincing you to make payments by creating a sense of urgency or fear. These scams can take various forms, such as posing as a bank, utility provider, or even a family member in need of urgent help. UBL UK is committed to helping customers stay informed when it comes to fraud protection and supporting customers who fall victim of scams.


Common types of APP Fraud and how to spot them


Common APP Fraud include: 


•    Impersonation Scams: Criminals claim to be someone from a trusted organisation such as a bank, the police, or government officials.
•    Invoice Scams: Fraudsters create and send fake invoices that appear to come from legitimate businesses asking you to send them a sum of money.
•    Purchase Scams: Fraudsters create fake adverts for goods or services online that do not exist. They will trick you into making payments for these non-existent items.
•    Investment fraud: You are convinced to move your money into a fake investment scheme.


Warning signs to help you identify a potential APP Fraud:


•    Urgency: Fraudsters will ask you to act quickly, by creating a sense of urgency, to avoid losing money or to secure a deal.

•    Unsolicited Requests: You receive unexpected phone calls, emails, or messages asking you to transfer money, provide personal details, update payment information or transfer funds to a “new” account for security purposes.

•    Unusual Payments Requests: You are asked to make a payment that is much larger than a usual invoice amount.

•    Unexpected prizes or opportunities: Fraudsters will sent emails or messages in regards to financial winnings from a competition you did not enter.

 

How to protect yourself from APP Scams

Here are steps you can take to prevent becoming a victim of APP Fraud:

  1. Verify the Source: If you are unsure as to whether a call, text message or email is genuine, contact the company directly using a phone number or website you trust, not the contact details provided to you.
  2. Take Your Time: Do not feel pressured into making a decision quickly. Take a moment to think and question requests that seem unusual.
  3. Be Cautious with Links and Attachments: Avoid clicking on links or downloading attachments from unexpected and suspicious emails or messages.
  4. Never Share your Passwords or PINs: Trusted organisations, (including UBL UK), will never ask you share your passwords or PINs.
  5. Check Account Details: If you are making a large payment, double-check the recipient's account details to ensure that they are genuine.

 

New rules from the Payments Services Regulator (PSR) regarding APP Fraud

From 7th October 2024, the PSR introduced a new set of fraud rules. These rules require all UK payment service providers, (including banks, building societies and other financial institutions ), to reimburse customers who have been victim of APP Fraud when using Faster Payments(1) and CHAPS(2). These rules apply to individuals, microenterprises(3) and charities(4) who made payments on or after 7th October 2024.

What is covered by the new rules?

·         Faster Payments and CHAPS Payments made within the UK from 7th October 2024 onwards.

·         Payments of up to £85,000.

·         Payments made from personal bank accounts.

·         Payments made by eligible micro-enterprises and charities.

Please note that an excess of £100 will be applicable to any eligible APP Fraud claim made. For example, if you made a claim of £500 and your claim is successful, you will receive a refund of £400. UBL UK will consider personal circumstances when investigating APP Fraud claims. Where personal circumstances have an impact on your ability to protect yourself from the fraud, the excess will not apply.

What is not covered by the new rules?

·         International payments.

·         Payments made via debit card, credit card, cash or cheque.

·         Payments to or from an account with a credit union, municipal bank, or a national savings bank (i.e. state-owned savings bank in the UK).

·         Payments made are unlawful (e.g. to purchase illegal goods).

·         If the APP Fraud claim investigation found that you acted with gross negligence.

What you can expect from UBL UK:

Each APP Fraud claim will be assessed and investigated on a case-by-case basis. We will aim to reimburse you within 5 business days(5) from the day you made a claim. However, in some circumstances, we may need more time to gather additional information to assess the validity of the APP Fraud claim. In these cases, it can take up to 35 business days to reimburse you.

 

What to do if you think you have been a victim of APP Fraud?

If you believe you have fallen victim to APP fraud, contact us immediately using one of the below contact methods:

1)      Telephone: You can contact our Customer Services Team on +44 (0)121 753 6000 Monday to Friday from 9:15am to 5:15pm (Excluding Bank Holidays). 

If you have a hearing difficulty or have a speech impairment, you can contact us via the Relay UK App, which is free to use. To find out more information on how to use Relay UK, please visit the Relay UK Website.

2)      Branch: You can visit our London Branch at 2 Brook Street, London, W1S 1BQ, Monday to Friday from 9:30am to 4pm (Excluding Bank Holidays).

3)      Post: You can send a letter to:

FREEPOST: RUEE-STYR-XYKE

UBL UK

2 Brook Street

London

W1S 1BQ

 

4)      Email: You can send an email to enquiries@UBLUK.com.

5)      Secure Message: If you are registered for our Digital Banking Platform, you can send us a secure message via Online or Mobile Banking.

Report It to Action Fraud: In the UK, you can report APP fraud to Action Fraud at Action Fraud or by calling +44 (0)300 123 2040 Monday to Friday 8am - 8pm.

 

Definitions:

(1)    Faster Payments – An electronic way of sending money in near real time.

(2)    CHAPS – A same day bank transfer often used when transferring a large amount of money.

(3)    Microenterprises – A business that employs less than 10 people and whose annual turnover or balance sheet total does not exceed €2 million.

(4) Charity – A body whose annual income is less than £1 million per year and is a charity as defined by the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 or the Charities Act (Northern Ireland) 2008.

(5) Business Days – Monday to Friday, excluding Bank Holidays.