Glossary · UK
What is Authorised Push Payment (APP) Fraud?
A scam in which a victim is tricked into knowingly authorising a bank transfer to a fraudster, for example by posing as their bank, a solicitor or a genuine seller — now covered by a mandatory reimbursement scheme for payments made from October 2024.
Full Definition
Authorised push payment (APP) fraud occurs when a victim is deceived into authorising a bank transfer to an account controlled by a fraudster, believing they are paying someone legitimate -- for example a scammer impersonating the victim's bank, HMRC or the police (safe account scams), a fraudulent invoice appearing to come from a genuine solicitor during a house purchase (conveyancing fraud), a fake online seller who never delivers goods (purchase scams), or a romance or investment scam. Because the victim themselves instructs the payment, APP fraud sits outside the older legal protections that cover unauthorised transactions (where a fraudster moves money without the account holder's knowledge or consent), which meant victims of APP fraud had historically struggled to get their money back even though they had been deliberately deceived. From 7 October 2024, the Payment Systems Regulator's mandatory reimbursement rules require banks and payment providers to reimburse victims of APP fraud on relevant faster payments in most circumstances, typically within five business days, up to a maximum claim of £85,000 per claim, split 50/50 between the sending and receiving payment firms, with a claim excess of up to £100 that firms can choose to apply (waived for vulnerable customers) and limited exceptions where the victim acted with gross negligence or the claim is deemed fraudulent. Victims should report the fraud to their bank and to Action Fraud (or Police Scotland in Scotland) as soon as possible, since delay can affect both the chances of recovering funds before they are moved on and, in some circumstances, the outcome of a reimbursement claim.