New APP Fraud Protection Measures from October 2024

At Finseta, we are committed to protecting you from fraud. From October 7, 2024, new U.K. regulations will come into force, designed to safeguard consumers against Authorised Push Payment (APP) fraud.

Below is a detailed guide to help you understand these changes and how they enhance your protection.

What is APP (Authorised Push Payment) Fraud?

APP fraud occurs when scammers trick you into authorising a payment to a fraudulent account. Unlike unauthorised transactions, these payments are approved by the victim, which can make it harder to recover the money. Common types of APP fraud include:

  • Impersonation scams: Fraudsters pose as trusted organisations (e.g., banks, government bodies) to deceive you.
  • Invoice fraud: Scammers intercept legitimate invoices and modify payment details to divert funds to their own accounts.

How the New Regulations Protect You

The Payment Systems Regulator (PSR) has introduced mandatory reimbursement requirements for PSPs (Payment Service Providers), including Finseta, when APP fraud occurs via the Faster Payments system. Key aspects include:

  • Reimbursement Guarantee: Victims of APP fraud will be reimbursed for losses up to £85,000 per claim. During your claim you will need to provide relevant evidence, and work with us to investigate your claim. The reimbursement process will be streamlined to ensure quick resolution.
  • No Excess for Vulnerable Customers: If you are considered a vulnerable customer, you will not be subject to any claim excess fees. The claim excess for other customers is capped at £100 per incident.
  • Timeframe for Reporting: To qualify for reimbursement, claims must be submitted within 13 months from the date of the fraudulent payment.

Exceptions to Reimbursement

In certain cases, Finseta may deny a reimbursement claim, such as when:

  • Gross Negligence: If it’s proven that the customer ignored clear fraud warnings or acted recklessly, reimbursement may be refused.
  • Fraudulent Intent: If the customer was involved in the fraud (first-party fraud), they will not be eligible for reimbursement.

How to Protect Yourself

Customer vigilance remains crucial. Here are some simple steps you can take to stay safe:

  • Verify before paying: Always verify requests for payment, especially if they seem urgent or come from unfamiliar sources.
  • Be cautious with your details: Never share sensitive information like bank details or passwords over email or phone unless you’re certain of the recipient’s identity.
  • Look out for warnings: Pay attention to security warnings from Finseta or other institutions.

What to Do If You’ve Been a Victim of APP Fraud

If you suspect you’ve fallen victim to APP fraud:

  • Contact us immediately: The sooner you notify us, the quicker we can act to recover funds.
  • Submit a claim: File your reimbursement claim within 13 months of the transaction.
  • Provide all necessary information: We may ask for details of the transaction and any relevant evidence to support our investigation

Payment delays

Where Finseta has concerns about a payment, it may hold the payment for further checks and investigation

  • Finseta can only hold a payment for up to 4 working days.
  • Finseta may request supporting documents to support our investigation.
  • Finseta may refuse to make a payment if it believes it is fraudulent.
  • Finseta may ask you to verbally confirm bank details with your beneficiary ahead of making payments.

Additional Support for Vulnerable Customers

At Finseta, we are committed to supporting all our customers, for more information or if you need assistance, please reach out to our support team or your designated account manager.

By keeping you informed and prepared, Finseta is here to ensure your security and peace of mind as we implement these important changes in fraud protection.

Stay Safe. Stay Informed.