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Authorised Push Payment (APP) fraud is on the rise, with millions lost to scams each year. To better protect customers, new rules introduced by the Payment Systems Regulator (PSR) now require payment service providers to reimburse eligible victims of APP scams. In this blog, we’ll explain what APP fraud is, the changes you need to know about, and how you can stay safe.
What is APP fraud?
APP fraud happens when scammers trick you into transferring money directly to them. Because these payments are “authorised” by you, getting your money back used to be difficult—but the new rules aim to change that.
Common types of APP scams include:
- Purchase scams: Paying for goods or services (like tickets or a car) that never arrive.
- Investment scams: Being promised high returns on fake investments.
- Impersonation scams: Fraudsters pretending to be HMRC, your bank, or even the police, urging you to make a payment.
The new rules: what has changed?
From 7 October 2024, new mandatory reimbursement rules mean that eligible victims of APP fraud are entitled to a refund. Here's what you need to know:
- Fast reimbursements
- Eligible claims will generally be reimbursed within 5 business days once a claim has been raised.
- For more complex cases, it may take up to 35 business days.
- Coverage limits
- Claims are capped at £85,000.
- An excess of up to £100 may apply to each claim.
- Eligibility requirements
- The reimbursement rules are applicable to individuals, microenterprises and charities.
- Fraudulent payments made in the UK and sent to a relevant account held in the UK, via Faster Payments (FPS) or CHAPS are covered.
- Claims must be raised within 13 months of the final fraudulent payment.
- Exclusions
Some examples where the rules do not apply to, but not limited to:- International transfers.
- Payments to accounts you control.
- Civil disputes (e.g., paying for a product/service you’re unhappy with).
- Escalating claims
- If you are dissatisfied with the outcome of the claim, you may escalate APP fraud claims to the Financial Ombudsman Service.
How to avoid APP fraud?
Protecting yourself from APP fraud starts with being informed and cautious. Follow these practical tips to reduce your risk:
- Stay alert for red flags
Scammers use urgency and fear to pressure victims. Watch out for:- Unexpected payment requests: Calls or emails asking you to transfer money urgently.
- High-stakes promises: Deals that sound too good to be true, like high returns on investments.
- Threatening messages: Fraudsters posing as HMRC, your bank, or the police to intimidate you.
- Verify before you pay
- Always double-check payment details before sending money, especially for large or urgent transfers.
- Never rush a payment—genuine organisations will not pressure you to act quickly.
- Secure your accounts
- Use strong and unique passwords for each account.
- Enable Two-Factor Authentication (2FA) to add an extra layer of security.
- Regularly review account activity for suspicious transactions.
- Be wary of phishing attempts
Fraudsters often use fake emails, messages, or websites to steal information.- Emails: Look out for phishing attempts asking you to log in or provide details. Always double check the sender’s email address.
- Calls: Be cautious of callers asking for passwords, PINs, or one-time passcodes. Legitimate financial services providers, including Capital on Tap, will never ask for this information. If you receive a suspicious call, use your Capital on Tap app to verify whether it’s really us by checking the Active Call Status feature. If you’re unsure, hang up and call the phone number on the back of your Capital on Tap card.
- Websites: Always make sure you’re on the genuine Capital on Tap website (https://www.capitalontap.com). Fraudulent sites often ask for credit card information when signing in—something we never do.
- Report suspicious activity quickly
If you think you’ve been targeted:- Contact our customer support team immediately at 020 8962 7401.
- If you’ve already made a payment, report it as soon as possible to increase the chances of recovering your money.
How Capital on Tap is helping you stay safe
At Capital on Tap, we’re committed to protecting your financial information and supporting you in the fight against fraud. Some of the ways we’re keeping you safe:
- Two-factor authentication (2FA)
We use 2FA to add an extra layer of security to your account. This ensures only you can log in by requiring a second step, like a code sent to your phone. - 24/7 fraud monitoring
Our advanced fraud detection systems monitor transactions around the clock, flagging and preventing suspicious activity before it becomes a problem. - New APP fraud reimbursement rules
We’re committed to supporting eligible customers under the new APP fraud rules. If you’re a microenterprise using Faster Payments, you may be reimbursed for fraud claims up to £85,000 per claim. - Call status feature
Worried about scam calls? Use the Capital on Tap app to verify if you're speaking with us. Look for the “Active Call Status” banner in your app, or check under Settings > Security. If no active call is listed, hang up and contact us immediately. Learn more here. - Card purchase protection
Your Capital on Tap Business Credit Card comes with built-in purchase protection:- If an item doesn’t arrive or is damaged.
- If a purchase isn’t what you expected or doesn’t work.
- If a seller goes out of business before delivery.
- If an event gets canceled after you’ve paid for travel or accommodation.
Learn more about these protections on our blog.
The bottom line
While the new APP fraud rules are a big step forward, your vigilance remains key. By staying informed, cautious, and proactive, you can reduce the risk of falling victim to scams.
Remember, if you ever suspect fraud, report it immediately, and we’ll work with you to resolve the issue. Together, we can stay one step ahead of fraudsters.
For more information on fraud prevention, visit our blog or check out our Account Protection page.
