Authorised Push Payment Compensation Claims

When a fraudster is convicted, the Court can grant compensation. But tracking down these criminals, especially if they’re overseas or asset-less, often proves challenging.

Many victims are unaware that banks are obligated to protect their accounts. They must not only enforce strong security measures but also address any warning signs.

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), that investigates the fraud and assesses the bank’s response. Banks must protect customers by stopping suspicious transfers, freezing accounts, or collaborating with other entities.

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
• Chase

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

When it comes to the various types of APP scams, it is crucial to understand the different tactics that scammers use to deceive victims and steal their money. These scams often involve tricking individuals into making transfers under false pretenses, only for the funds to be transferred directly into the scammer’s account.

• Romance Scams
  Romance scams often start on dating apps. Scammers manipulate victims into trusting them and then request money via bank transfer or cheque. By the time victims realise they’ve been defrauded, it’s usually too late to recover their funds.
• Cryptocurrency Scams
  Cryptocurrencies are gaining global traction in transactions. Yet, scammers exploit the allure of quick profits, luring investors into transferring funds into fake cryptocurrency portfolios. Once victims send their money and discover the scam, recovery is nearly impossible.
• Invoicing or Impersonation Scams
  APP/Bank Transfer Fraud targets both businesses and individuals. Scammers pose as tradespeople or suppliers, sending fake invoices online. Once the transfer is made, recovering the money becomes nearly impossible.
• Trusted Adviser/Brand Impersonation Scams
  Cybercriminals use sophisticated tactics to impersonate advisers like solicitors or accountants, tricking victims into making payments. Scammers also pose as police, bank representatives, or even big-brand providers to steal confidential bank details and money.
• Conveyancing Scams
  Buying a home is thrilling, but also one of the biggest financial transactions you’ll ever make, often requiring substantial deposits and final payments. Conveyancing fraud involves scammers intercepting communications between you and your solicitor and diverting your money to their own accounts.
• Investment Scams
  Investing can be a powerful tool for growing wealth or securing retirement. But, where there’s money, scammers lurk. Unregulated schemes promise ‘guaranteed’ high returns to swindle investors out of thousands. Fraudsters pose as trusted advisors, peddling fake opportunities in overseas properties, storage units, carbon credits, biofuels, green oil, farmland and parking spaces.
• Employment Scams
  Job scams lure seekers with promises of easy, usually home-based work. These fraudulent offers flood LinkedIn, Indeed, Instagram and TikTok. Victims pay for equipment or courses but end up losing money and personal information instead.
• Gold Investment Scams
  For centuries, gold and precious metals have been popular for their tangible value and stability. Yet, where profit gleams, scammers lurk. These fraudsters use sophisticated tactics to swindle investors with promises of high returns or counterfeit gold.
• ‘Dear Mum/Dad’ Scams
  This is where scammers text or email parents pretending that they are their children and ask for emergency transfers using stories such as they have lost their phones or an urgent rent payment needs to be paid.

If your bank rejects your claim for an authorised push payment refund, you can escalate your case to the Financial Ombudsman Service (FOS), an independent body that investigates complaints between consumers and financial firms.

The Ombudsman will review:

• Whether the bank followed the CRM Code or the 2024 PSR reimbursement rules.
• What warnings, if any, the bank provided before the transfer.
• Whether you acted with reasonable care, known as the Consumer Standard of Caution.
• How quickly the bank responded once you reported the fraud.

You typically have six months from the date of your bank’s final response to submit a complaint to the FOS. Once lodged, most cases are reviewed within around 90 days, though complex investigations can take longer.

Documents you’ll need include:

• Copies of your correspondence with the bank (emails, complaint letters, chat logs).
• Bank statements showing the disputed transfer(s).
• Screenshots or transcripts of any scam communications.
• Any written response or outcome from the bank’s internal investigation.

The FOS has upheld a growing number of APP fraud complaints in recent years, with success rates improving significantly for cases involving ignored warnings or inadequate fraud detection systems.

TLW Solicitors can prepare your complaint, gather supporting evidence, and handle all correspondence with both your bank and the Ombudsman, ensuring deadlines and evidential standards are met.

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 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 it 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. One of our fraud experts will review your claim and determine if we can assist. If eligible, we’ll send you a welcome pack with all the essential details and information needed from you for proceeding.
3. A dedicated case handler will assess your situation. If we believe you have a valid claim, we’ll promptly guide you through the next steps. Should your claim be unviable, we’ll explain why and suggest alternative options.
4. Your case handler will gather and review all necessary documents to advance your claim, including liaising with the banks on your behalf. You’ll receive timely updates via email and phone calls.
5. Claiming a refund can take several months due to factors beyond our control. As your case progresses, we’ll keep you updated on timelines. Rest assured, you’ll receive regular updates and have direct access to your dedicated case handler for any questions or concerns.
6. With our ‘no win, no fee’ policy, you pay nothing if your claim doesn’t succeed.

While no system is foolproof, taking a few practical steps can dramatically reduce your exposure to authorised push payment scams:

• Double-check account details: Use the bank’s Confirmation of Payee service before sending any transfer. If the name does not match, stop and verify.
• Hang up and call back: If someone claiming to be from your bank or the police asks you to move money, end the call and dial 159, the secure, industry-backed fraud verification line.
• Never rely on email-only instructions: Particularly during property transactions or investment deals. Always confirm any change of payment details by phone using a number you know is genuine.
• Pause before sending: Most APP scams succeed because victims feel pressured to act urgently. A short delay to double-check can prevent major losses.
• Report any suspected scam immediately: Contact your bank and Action Fraud (the UK’s National Fraud and Cyber Crime Reporting Centre) via actionfraud.police.uk.

Staying cautious not only protects your money but also strengthens your position if you ever need to make a reimbursement claim under the PSR or CRM rules.