Important Update: New Authorised Push Payment Fraud Regulations

At Swansea Building Society, your safety and financial security are our top priorities.

As part of our ongoing commitment to protecting your savings from fraud, we’d like to update you on some new regulations, which from 7th October 2024, will increase the protection of customers affected by Authorised Push Payment (APP) Scams.

 

What is an Authorised Push Payment (APP) Scam?

An Authorised push payment (APP) scam means: where a person uses a fraudulent or dishonest act or course of conduct to manipulate, deceive or persuade you into transferring funds from your account to another account not controlled by you, where:

 

  • The recipient is not who you intended to pay, or
  • The payment is not for the purpose you intended

 

Unlike other types of fraud where someone may hack into your account, APP scams involve you authorising the payment after being deceived by fraudsters who may have intercepted emails and obtained convincing information about your payment recipient.

These scams can be particularly convincing because fraudsters often impersonate trusted organisations, such as your bank, a service provider, or even a friend. It can be hard to spot the scam until it’s too late, as everything appears to be legitimate at the time of the payment.

 

What are the new regulations for Authorised Push Payment (APP) Scams launching in October 2024?

From 7 October 2024, eligible customers who believe they have been subject to an APP Scam by making a payment through the Faster Payment Scheme (FPS) or a Clearing House Automated Payment Scheme (CHAPS) payment within the UK are entitled to reimbursement.

The new rules apply to everyone using Faster Payments and CHAPS, including payment service providers (PSPs) such as the Society, that offer accounts in the UK.

Eligible customers under the rules include:

  • Individuals
  • Charities (with annual turnover of less than £1m)
  • Micro-enterprises (a business that employs less than 10 persons and has an annual turnover or balance sheet total that does not exceed €2m)

 

Are there any exclusions where claims won’t be reimbursed?

Claims will not be reimbursed in the following cases:

  • If the claimant committed fraud or was grossly negligent
  • Payments made before 7 October 2024, or where the claim is made more than 13 months after the payment was made to the fraudster
  • Transactions outside the UK
  • Payments made via cash, cheque, or via a non-bank system
  • Payments made to an account you control, such as to a nominated bank account in your name which you operate
  • Payments that are not authorised by you (“unauthorised payments”)
  • Civil disputes
  • Payments through credit unions, municipal banks, or national savings banks

 

How to make a claim

If you fall victim to an APP Scam, please follow the steps below:

Who do I contact?

Please contact us in person at your nearest branch, by phone, email or post, using the contact details on our website: Contact Swansea Building Society | Swansea Building Society (swansea-bs.co.uk).

You’ll also need to report this to the police and comply with any information requests.

What is the deadline for submitting an APP Scam claim?

You must submit your reimbursement claim to the bank or building society from which the payment was made as soon as possible, at the latest within 13 months of the final fraudulent payment.

Is there a maximum amount that can be reimbursed?

The current maximum limit that can be claimed is £85,000. This is subject to change from time to time by the Payment Services Regulator.

 

What to expect from us when making a claim

When you make a claim, we will ask you to provide information of the payment and the circumstances surrounding your claim.

We will review the information and, if everything checks out, you should receive a refund to your account within 5 working days. For more complex cases, it might take up to a maximum of 35 working days.

We may ask you for more information about your claim during this time. We might also need to share your name and account details with the receiving PSP to help review your claim.

Every claim will be assessed on a case-by-case basis, considering the evidence presented by you, information from the receiving PSP, or where relevant a third party such as the police.

 

 

If you need further support with your claim

If you’re unhappy with the outcome of your claim, you can complain through our complaints process as set out on our website: Complaints | Swansea Building Society (swansea-bs.co.uk). This information can also be access via any of your branches.

 

Action Fraud can provide independent advice. You can call them on 0300 123 20240 or visit their website www.actionfraud.police.uk

For more advice on how to protect yourself from fraud, visit www.takefive-stopfraud.org.uk or www.stopthink-fraud.campaign.gov.uk

 

How to help us protect you from APP Scams

To help us protect you from APP scams, here’s what to look out for and what to do if you think you may have been targeted:

Be cautious

Always be wary of unexpected emails or calls from a business, bank or individual letting you know that their payment details have changed. There is often a sense of urgency from the fraudster. Don’t make any payments without checking via an independently verified source that the payment details you have are correct. If something seems unusual – stop, think and look out for warnings from us or relevant authorities.

Report anything suspicious

If you think you’ve been targeted by a scam, let us know straight away. We’re here to help, and the quicker you tell us, the sooner we can act.

Share information

If we need information to help with our investigation, please provide anything that can assist us in resolving the issue.

Work with authorities

In some cases, we may ask you to cooperate with the police, either directly or through us, to help resolve the fraud.