Authorised push payment (APP) fraud
APP fraudAlso called APP scam, authorised push payment scam
Authorised push payment fraud happens when a criminal tricks a person or business into sending money from their own account to one the criminal controls. The victim authorises the payment, so it is not unauthorised fraud. Since October 2024 UK rules require payment firms to reimburse most victims of Faster Payments scams, up to £85,000.
How it works
Common forms include purchase, romance, investment and impersonation scams. Sending banks warn customers, run confirmation of payee and screen outbound payments for risk. Receiving banks look for mule accounts that collect and move stolen funds. Since 30 October 2024 UK firms can delay a suspect outbound payment by up to four business days.
Under the Payment Systems Regulator's rules, the sending and receiving firms split each reimbursed loss 50/50. Firms must reimburse within five business days of a claim, with limited exceptions such as gross negligence. The regime moved the cost of scams onto payment firms, which now treat receiving-side controls as a direct financial exposure.
The rules
Requires reimbursement of in-scope APP scam victims up to £85,000, with costs split equally between sending and receiving firms.
Payment firms sending and receiving Faster PaymentsRequired the PSR to impose a reimbursement requirement for qualifying APP scam payments made through Faster Payments.
Payment Systems RegulatorAllows a firm to delay an outbound payment by up to four business days where it has reasonable grounds to suspect fraud.
UK payment service providersCommon questions
Who pays when an APP fraud victim is reimbursed?
Under UK rules the sending and receiving payment firms each pay 50% of the reimbursed amount. The sending firm reimburses the customer first and then recovers half from the receiving firm, which held the account the money went to.
What is the APP fraud reimbursement limit?
The maximum reimbursement under the Faster Payments rules is £85,000 per claim. The PSR says the cap covers more than 99% of claims. Larger losses can be taken to the Financial Ombudsman Service.
Does the APP reimbursement scheme cover all payments?
No. It covers consumers, micro-enterprises and charities paying by Faster Payments, with a parallel CHAPS scheme. It applies to transfers between UK accounts. Card, cash and cheque payments have their own protections. Claims must be made within 13 months of the scam payment.
Who regulates APP fraud reimbursement?
The Payment Systems Regulator. In March 2025 the government announced it would fold the PSR into the FCA, but the PSR continues to operate until legislation makes that change.
