What is APP fraud? Advice for APP scam victims to get scammed money back

Every year, thousands of people in the UK fall victim to Authorised Push Payment (APP) scams. These are fraudulent schemes where individuals are tricked into willingly transferring money to criminals. APP scams are often sophisticated, emotionally manipulative, and can be financially devastating.

Being a vicitm of an APP scam can feel hugely distressing. However, thanks to new protections under the Payment Systems Regulator (PSR), victims now have a stronger chance of recovering their money.

In this article, Senior Consultant Solicitor Neena Jhawer discusses APP scams, what to do if you’re a victim, and how a solicitor can help you through the process.

What is an APP scam/ APP fraud?

Authorised Push Payment (APP) scams happen when someone is deceived into authorising a payment to a fraudster. Common examples of APP fraud include:

• Romance Scams: Fraudsters build fake relationships online and manipulate victims into sending money.
• Impersonation Scams: Criminals pose as trusted organisations like banks, HMRC, or the police.
• Investment Scams: Victims are lured into fake investment opportunities with promises of high returns.
• Purchase Scams: Payments are made for goods or services that are never delivered.
• Misrepresentation Scams: Victims are misled by false claims or identities, often involving fake business deals or job offers.

What are my rights under the PSR?

As of October 2024, the Payment Systems Regulator (PSR) introduced mandatory reimbursement rules for APP fraud victims. This means that your bank may have to reimburse you if you’re a victim of an APP scam. If you’ve been scammed through Faster Payments or CHAPS within the UK, you may be entitled to:

• Reimbursement of up to £85,000
• Payment within 5 business days
• Protection for vulnerable consumers
• Shared liability between sending and receiving banks

Banks can no longer automatically deny claims just because they think you may have been negligent (i.e. not done proper checks before sending money to someone). If you acted in good faith, you deserve protection.

What should I do if I’ve been scammed?

Realising you’ve fallen victim to an APP scam can be scary and overwhelming. However, the sooner you act, the better, for your peace of mind and a better chance at recovering your stolen funds. As soon as you realise you’ve been a victim of fraud, follow these steps:

1. Contact Your Bank Immediately: Ask them to freeze your account and begin the reimbursement process.
2. Gather Evidence: Save all communications, receipts, and transaction records related to the scam.
3. Report the Scam: File a report with Action Fraud and notify relevant platforms involved in the scam (e.g., dating apps, social media).
4. Seek Legal Advice: A solicitor can help you build a strong case, challenge bank decisions, and recover your money.

What can I do if my bank has rejected my reimbursement claim?

It can be hugely frustrating and distressing to learn your bank has rejected your reimbursement claim. However, there are still steps you can take to appeal their rejection and hopefully recover your funds. Here are the steps you should follow:

Step 1: Appeal to Your Bank

If your bank refuses to reimburse you under the PSR’s mandatory APP fraud reimbursement scheme, you have the right to challenge their decision:

• Request a Written Explanation: Ask the bank to provide a detailed rationale for the refusal, including any claims of gross negligence or consumer fault.
• Submit an Internal Complaint: Use the bank’s formal complaints process. Clearly outline why you believe the decision is unfair and reference the PSR guidelines.
• Provide Additional Evidence: Include any new documentation or context that supports your claim (e.g., proof of vulnerability, misleading communications, or lack of bank warnings).

Step 2: Escalate to the Financial Ombudsman Service (FOS)

If the bank still refuses to reimburse you, you can escalate the matter to the Financial Ombudsman Service (FOS). The FOS is an independent body that resolves disputes between consumers and financial firms.

What can the FOS do for APP fraud victims?

As a victim of an APP scam, the Financial Ombudsman Service may be able to help you in a few different ways, including:

• Review the Bank’s Decision: The FOS will assess whether the bank followed the PSR rules fairly and reasonably.
• Investigate Evidence: They may request additional documents from both you and the bank.
• Award Compensation: If they find the bank acted unfairly, they can order them to reimburse you and potentially offer additional compensation.

What are the compensation limits for APP scams?

As of April 2025, the FOS can make a maximum award of £445,000 for complaints about acts or omissions occurring on or after 1 April 2019. This is significantly higher than the £85,000 cap under the PSR scheme, meaning FOS can provide additional redress in exceptional cases.

Important note: the FOS can recommend payments above this limit if they believe it’s fair, though firms are not legally required to comply with recommendations beyond the cap.

How can a solicitor help me get my money back?

Legal professionals play a vital role in scam recovery. Here’s how they can assist you and give you the best chance of recovering your money:

• Case Assessment: Solicitors evaluate whether your case qualifies under the PSR rules and identify the type of scam.
• Evidence Collection: They help gather and organise all relevant documentation, including transaction records and communications.
• Bank Liaison: Solicitors submit formal complaints to your bank and negotiate for reimbursement.
• Escalation: If your bank refuses to pay, your solicitor can escalate the case to the Financial Ombudsman Service for you.
• Asset Recovery: In complex cases, solicitors can pursue freezing orders, disclosure orders, or civil litigation to trace and recover stolen funds.
• Support for Vulnerable Clients: If you’re considered vulnerable (due to age, health, or personal circumstances), solicitors can highlight this to banks and other organisations, which may assist you in getting your stolen money back.

Fraud victims often feel isolated, ashamed, and unsure of what to do next. A solicitor not only provides legal expertise but also emotional support and reassurance. With the right guidance, you can:

• Reclaim your lost funds
• Hold financial institutions accountable
• Protect yourself from future scams

Neena Jhawer is an expert in fraud and criminal law and regularly assists clients with this type of scam. If you’re a victim of an APP scam, contact Neena today to check if you’re eligible and dicsuss your case. The sooner you act, the better chance you have of recovering your funds