Authorised Push Payment Refund:
Get Your Money Back After An APP Scam

If criminal proceedings are taken and there is a successful conviction, then the Court can award compensation. However, it can sometimes be difficult to trace the fraudster, particularly if they are abroad, or they may no longer have any assets to pay any compensation.

Many victims are unaware that the banks from where the payments to the scammer are made, have a duty to apply due diligence when looking after their customers’ accounts. As well as having robust security checks and data protection measures, the banks should have processes in place to highlight and act on any ‘red flags’ such as vulnerable customers, regular and high-value payment transfers, or other unusual or out-of-character transactions activity.

If there is a dispute between a bank and a customer who has lost out to a scam, then a complaint can be made to the Financial Ombudsman Service (FOS). FOS will examine the circumstances of the fraud and the bank’s response. FOS will take into account that banks will be more familiar with the types of fraud than the customer, so they should do what they can to protect them including stopping suspicious transfers, freezing accounts or collaborating with other banks.

The Financial Ombudsman Service has carried out investigations relating to a wide range of APP Fraud related complaints involving banks including:

• HSBC
• NatWest
• Santander
• Barclays
• Halifax
• Revolut

There has been a range of recent FOS decisions supporting customers who have been the victims of these scams, with some receiving substantial compensation. Some examples can be found here:

• Romance Scam
• Cryptocurrency Scam

• Romance Scams
  Romance scams have been highlighted in the Netflix documentary ‘The Tinder Swindler’ and often involve meeting through online dating apps and then using manipulation to build a romantic relationship and trust with the victim. This then develops into requests for money by bank transfer or cheque. It is often too late to do anything once the money has been transferred and the victim realises that they have been defrauded.
• Cryptocurrency Scams
  Cryptocurrency, such as Bitcoin or Ethereum, is increasingly being used in transactions across the world. In turn, scammers have used promises of financial ‘quick wins’ to persuade would-be investors to transfer money to build cryptocurrency portfolios. Once the money has been sent and the victim realises they have been scammed, then there is little chance of getting the money back from the scammers.
• Invoicing or Impersonation Scams
  Authorised Push Payment (APP)/Bank Transfer Fraud can affect businesses and individuals. Scammers can pretend to be tradespeople or business suppliers and send fake invoices online. Again, once the payment has been made, it is often too late to get the money back.
• Trusted Adviser/Brand Impersonation Scams
  Cybercriminals can use sophisticated techniques to deceive their victims into thinking they are their trusted advisers such as a solicitor or accountant, then persuade them to make payments such as an invoice or payment on account. Similarly, scammers can pretend they are from the police, local authority, tax office, banks or big brands such as broadband or utility providers, again deceiving people into handing over confidential bank details and/or making payments.
• Conveyancing Scams
  Whilst exciting, buying a home is often the biggest financial transaction people will ever make in their lives, usually involving paying a substantial deposit and final balances.  Unfortunately, where there are large movements of money, there are scammers! Conveyancing and property scams are on the rise as fraudsters use intricate cons to get between you and your hard-earned savings. Conveyancing fraud involves scammers intercepting communications between you and your solicitor and diverting your money to their own accounts.
• Investment Scams
  Investing can seem like an excellent way to capitalise on existing funds or build up a pension pot for retirement. However, where there is money, there are scammers. Unregulated, ‘too good to be true’, ‘guaranteed’ high return investment and pension scams mean that even seasoned investors are losing thousands. Scammers convince individuals looking for investment and pension growth opportunities to hand over money for seemingly legitimate schemes by posing as a representative of a trusted, regulated investment firm or group. Typically, it turns out that these opportunities either do not exist or if they do, the scammer keeps the investor’s money, rather than investing it. There are many types of unregulated investment and pension scams, examples include off-plan property (often abroad, such as hotels), storage units, carbon credits, biofuels, green oil, farmland and car parking spaces.
• Employment Scams
  Also known as job or recruitment scams, employment scams prey on unsuspecting, sometimes vulnerable and financially naïve, individuals looking for a job. The scam involves the victim applying for or being contacted about a job, often working from home with no qualifications or experience, advertised on a recruitment site, such as LinkedIn or Indeed, or responding to aggressive marketing or direct messages on platforms such as Instagram, TikTok or WhatsApp. They are then asked to pay money for things like equipment, courses linked to the job, or to sign up to a ‘portal’ where they need to perform specific tasks to earn money. The scammers’ goal is to convince the victims to transfer their money or personal details.
• Gold Investment Scams
  Gold and other precious metals have been popular investment options for centuries due to their tangibility and the fact that their value will generally at least remain stable and often increase during economic downturns. Like most investments, where there is an opportunity to make money, there will also be scammers. Fraudsters use sophisticated tricks and tactics to convince investors to part with their capital, promising high, guaranteed returns or even passing off fake gold.
• ‘Dear Mum/Dad’ Scams
  This is where scammers text, WhatsApp message or email parents pretending to be their children and ask for emergency payments using stories such as they have lost their phones or an urgent rent payment needs to be paid.

It is extremely important to urgently advise the police and also your bank. You can also report any suspected scamming activity to Action Fraud, the National Fraud and Cyber Crime Reporting Centre. If you have lost money, then that may lead to a criminal investigation by the police.

The specialist team at TLW Solicitors has many years’ of experience in successfully dealing with claims against FOS, even where initial complaints have been rejected.

We understand the time limits to be followed, the information needed and the claims and appeals processes. The team will also deal with any complex legal arguments and defences that the bank may raise. The combination of our experienced team and digital case management systems means that we proactively pursue your claim and aim to get the best possible results.

The specialist fraud team at TLW Solicitors are helping many clients recover refunds on a no-win, no-fee basis. If you have a claim, we will deal with your claim from start to finish, whilst keeping you up to date as the case progresses.

The steps in the claims process are:

1. Submit your claim with us by completing either the online claim form, request a callback, telephone our office, or email us using the contact details provided.
2. A member of the fraud team will discuss your claim with you and advise whether you may have a claim that we can deal with.  If we can assist you, we will send you our welcome pack which contains useful information on what to expect throughout your claim as well as details of what information we’ll need from you.
3. You will be assigned a case handler. If following an initial assessment of your case we think you have a claim, we will be in touch to go through the next steps. If we don’t think you have a claim, we will provide our reasons why so that you may consider other options.
4. Your case handler will ask for and review any additional documentation needed to progress your claim, this will include contacting the banks involved on your behalf. You will be kept up to date by email and phone calls if required.
5. Depending on the circumstances of your case and due to a wide range of factors outside of our control, making a refund claim can take several months to complete – as your case progresses, we will try to give you as much information as possible about the likely timescales. We will continue to update you on your claim, and you will be able to contact your dedicated case handler if there are any issues or concerns.
6. We work on a ‘no win, no fee’ basis, which means that if your claim is unsuccessful, there will be no charge for the work we do.