Some of the most damaging scams do not steal your money at all. They persuade you to send it yourself. These are known as authorised push payment (APP) scams, and since 2024 the UK payments system has had a formal reimbursement framework for them. This article explains what the Payment Systems Regulator (PSR) and the Financial Ombudsman Service say about how it works. The rules described cover payments made through the Faster Payments and CHAPS systems between UK bank accounts, and they apply to payments made on or after 7 October 2024.
What counts as an APP scam
The Financial Ombudsman Service describes an APP scam as one where a scammer persuades you to transfer your money into another account, for example to pay a fake invoice, make a fake investment or pay money into an account in your own name, such as a cryptocurrency account. The PSR says all types of APP fraud are covered by the new measures.
Who is protected and by how much
According to the PSR, protection applies to individuals, microenterprises and charities making UK bank transfers through Faster Payments or CHAPS. The maximum reimbursement is £85,000. In its policy statement, the PSR says that limit covers 99.8% of Faster Payments APP scams by volume and 90% by value. Firms may choose to reimburse more. Where a loss is larger than that, a complaint may be taken to the Financial Ombudsman Service. For eligible complaints referred on or after 1 April 2026 about acts or omissions from 1 April 2019 onwards, the Ombudsman’s compulsory award limit is £455,000; different limits apply to older complaints and events (for example, £205,000 for complaints referred on or after 1 April 2026 about events before 1 April 2019).
How the process works
- Report quickly. The PSR says to report the scam as soon as possible, and within 13 months of making the payment.
- Reimbursement timing. The PSR states that reimbursement should happen within 5 business days of making your claim. Firms can pause the clock to gather information, but must arrive at an outcome within 35 business days.
- Optional excess. Firms can apply an optional £100 excess, but not to vulnerable consumers.
What is not covered
The PSR lists several exclusions. Reimbursement can be refused where the customer was complicit in the fraud or grossly negligent, although the regulator stresses that gross negligence is a high bar and that this exception does not apply to vulnerable consumers. Civil disputes, such as a disagreement with a seller about goods or services, are outside the scheme. Payments by card, cash or cheque are also not covered by this framework. If you paid by card, other protections may be available, and we cover those in a separate guide to card payment protections.
If the firm says no
The Financial Ombudsman Service says that if you have lost money to a scam and are unhappy with how your bank or payment provider handled things, it may be able to help. It is clear about its limits: it cannot solve the crime itself, which is a matter for the police, but it can investigate how your bank or payment service provider dealt with the situation. It says it decides cases using the relevant law and regulations, including the Contingent Reimbursement Model (CRM) Code, the Faster Payments and CHAPS reimbursement rules, and good industry practice.
Before it can look at a case, you must first complain to the company involved. The Ombudsman says the company must get back to you within 15 days, either with a response to your complaint or with an explanation of why it cannot yet respond. The service is described as free and easy to use.
Practical steps after a bank transfer scam
- Contact your bank straight away, using the number on your card or the bank’s official website rather than any number given by the person who contacted you.
- Keep a record of the messages, account details and payment references so that you can explain clearly how the payment came about.
- Tell the bank if there is anything that makes you more vulnerable to being scammed at the time, because the PSR’s rules treat vulnerable consumers differently on the excess and the gross-negligence exception.
- Note the dates carefully, because of the 13-month reporting window.
- If the outcome is unsatisfactory, complain to the firm first, then go to the Financial Ombudsman Service.
Limits worth remembering
The framework is a safety net, not a licence to be careless. It does not cover payments made before 7 October 2024, and the PSR says it applies to bank transfers rather than card, cash or cheque payments. Outcomes also depend on the facts of each case. Because the rules include an optional excess and exclusions, you should not assume a full refund, and you should not treat the existence of the scheme as a reason to lower your guard. The better outcome is always not sending the money in the first place, so treat any request to move money urgently as a red flag and check it through a channel you trust.
The bottom line
For bank transfers made through Faster Payments or CHAPS on or after 7 October 2024, the PSR says victims of APP fraud can claim reimbursement of up to £85,000 from their bank. Report within 13 months, expect an outcome within 35 business days at most, and be aware of the optional £100 excess and the exclusions for civil disputes and non-bank-transfer payments. If your firm refuses, complain to it first and then take the case to the Financial Ombudsman Service, which is free to use.
Sources
- Payment Systems Regulator, “APP fraud reimbursement protections”
- Payment Systems Regulator, “PS24/7 Faster Payments APP scams reimbursement requirement: Confirming the maximum level of reimbursement”
- Financial Ombudsman Service, “Scams where you’ve been tricked into making a payment”
- Financial Ombudsman Service, “Compensation” (award limits)