The Rise of App Scams: What you need to know

Across the UK the occurrence of APP scams continues to rise, targeting individuals and businesses alike. Within the first 6 months of 2024, there were over ninety- seven thousand cases of authorised push payment (APP) fraud.

Here’s what you need to know the rise of APP Scams.

Image from Raju Shrestha from Pixabay

Common app scams

App scams can happen in many ways, including:

  • Phishing Apps: These apps mimic legitimate ones to steal personal information.
  • Fake Antivirus Apps: Claim to protect your device but instead install malware.
  • Subscription Traps: Offer free trials but then charge high subscription fees without clear consent.
  • Clone Apps: Imitate popular apps to trick users into downloading them.

A fraudster might impersonate a trusted organization, like a bank or utility provider, to convince you to move your funds or pay a fake invoice for common bills.

How to protect yourself from APP scams

Common signs of APP fraud include receiving unexpected messages or phone calls asking for payment or personal information. You may be told that there’s an emergency which requires immediate payment.

The best way to protect yourself against fraud is to remain calm. Fraudsters often use techniques to pressure you into making a payment before you have time to assess the situation.

Before making any payment or sharing personal information, it’s wise to seek a second opinion. This could involve contacting your bank or other provider directly for assistance. Always verify contact details on official websites before doing so.

What should I do if I have been scammed?

If you believe that you are a victim of fraud, your first step is to report this to your bank immediately. They may be able to prevent the transaction from completing or trace the funds.

You can also report scams to Action Fraud online or via telephone on 0300 123 2040.

Can I be reimbursed for an app scam?

In October 2024, the Payment Systems Regulator (PSR) introduced new rules stating that eligible victims of APP scams must be reimbursed for lost funds.

These rules apply to payments made via Faster Payments or CHAPS from one UK bank account to another on or after 7 October 2024. Faster Payments allow almost immediate transfers, commonly used for single immediate transfers or standing orders, while CHAPS is used for same-day or overnight payments.

To be eligible for reimbursement, you must protect yourself against APP scams by not acting carelessly and heeding any warnings from your bank. Additionally, victims must report the scam promptly, within 13 months of the payment.

How much can I be reimbursed after an app scam?

Most consumers can expect their bank to reimburse their lost funds within five business days of reporting fraud. The reimbursement covers any sums lost up to £85,000.

However, individual banks may choose to reimburse more than £85,000 for certain circumstances.

Can the Financial Ombudsman Service help?

If you lose more than £85,000 and are not reimbursed, you can raise your case with the Financial Ombudsman Service, which has a compensation limit of £430,000.

You can also complain to the Ombudsman if you are not happy with how bank has handled a report of fraud.

What if I used a credit card to make the scam payment?

If a scam occurs after you make a payment using a credit card, section 75 of the Consumer Credit Act 1974 may protect you.

This legislation provides protection on credit card purchases between £100.00 and £30,000.00. For more information on section 75, please see our article at the link below or contact us for more information.

At Bailoran, we understand that being a victim of fraud is a distressing experience. Under the new reimbursement rules, banks should automatically reimburse victims for lost funds. However, the reimbursement process can sometimes be challenging, diverting your attention from running your business. We specialise in disputes between individuals and their banks, and we can handle the correspondence on your behalf to secure the reimbursement you deserve. We do not act for any banks or hold any panel positions, ensuring we are conflict-free. This independence allows us to advocate forcefully and in your best interests, and we have a strong track record of success in doing so for our clients. Please note that this article does not constitute legal advice. If you need any help or further information about app scams or disputes with your ban generally, please contact us to speak to one of our legal experts.

Eloise Bailes

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Email:  info@bailoransolicitors.com

Web:    www.bailoransolicitors.com

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