UK PSR Mandatory Reimbursement rules
The Payment Systems Regulator (PSR) is making sure all firms who provide payment services must reimburse customers who have fallen victim to an APP scam when using Faster Payments or CHAPS.
What are the new Payment Systems Regulator rules?
Nationwide has been a member of the Contingent Reimbursement Model Code since 2019, which has helped ensure our members who fall victim to Authorised Push Payment (APP) Scams are protected.
From Monday 7 October 2024, all firms (including Nationwide) who provide payment services must reimburse consumers who have fallen victim to an APP scam when using Faster Payments or CHAPS (with some exemptions). The new rules simply make the process for Nationwide customers faster and easier.
What is an Authorised Push Payment (APP) fraud or scam?
Authorised push payment fraud happens when someone is tricked into sending money to a fraudster posing as a genuine payee.
Every year thousands of people and businesses are victims of APP fraud. Common types of APP fraud include:
- Purchase fraud, where criminals pretend to sell things that don’t exist.
- Impersonation fraud, where criminals claim to be someone from a bank, the police or another trusted organisation to steal money.
- Investment fraud, where you are convinced to move your money into a fictitious fund or to pay for what later turns out to be a fake investment.
- Romance fraud, when criminals use a fake dating profile to start a relationship with you and then ask for money.
- Invoice fraud, where fraudsters send false invoices.
What if a payment is taken from your account by someone without your permission?
If a payment is taken from your account by someone else without your permission, it is called unauthorised fraud. For example, if your bank card is stolen and used to buy something in a shop or online.
There are separate rules for reimbursing unauthorised fraud, including credit and debit card fraud. Contact 0800 055 6622 immediately if you spot any transactions that you do not recognise.
Remember, fraud affects people from all walks of life, and you should never be embarrassed if you have been scammed. Nationwide will be there to help you.
The Consumer Standard of Caution
You should always be careful and cautious when making payments. Under the new rules, it’s important that you follow the advice and warnings before and after you make a payment. This means you must:
Follow any advice or warnings provided by Nationwide and law enforcement. This includes if we warn you when making the payment that we think it may be fraud. Nationwide and law enforcement will never ask you to transfer money to protect yourself from fraud.
Report the fraud as soon as you can, and no more than 13 months after the last fraudulent payment was made.
Respond to any requests from us for additional information about your claim.
Report the details of the fraud to the police, as soon as you have made a claim. We may offer to do this on your behalf if you have not done so when you make a claim.
Information:
Nationwide may choose not to reimburse money lost in an APP fraud if you have not met the Consumer Standard of Caution.
How Nationwide will deal with scam claims from 7th Oct 2024
Our priority remains to support and protect innocent victims of a scam. We’ve chosen to waive the £100 excess allowed under the new rules. That means we won’t make any deduction to your refund if you’re eligible.
What is covered by the new rules:
- Payments made within the UK.
- Payments made from 7 October 2024 onwards.
- Authorised Push Payment (APP) Scams, which is when someone is tricked into sending money to a fraudster posing as a genuine payee.
- Payments made using Faster Payments or CHAPs.
- Payments from personal bank accounts and payments made by micro-enterprises and certain charities.
- Payments up to £85,000.
What is not covered by the new rules:
- If you paid using a payment type other than Faster Payments or CHAPS. For example, cash, a cheque, or a credit, debit, or prepaid card.
- International payments.
- It is a civil dispute, not fraud. For example, if you have paid a genuine retailer or business but you are not satisfied with the product or service you have received.
- You have acted fraudulently yourself – including if you have lied or misrepresented your circumstances for financial gain.
- If you've acted with gross negligence. For example, by ignoring a warning from us that the payment was likely to be a scam.
- It’s a payment to or from an account with a credit union, municipal bank, or a national savings bank (state-owned savings bank in the UK).
- It is a payment you have made to another account that you control.
- The payment you made is unlawful. For example, if the payment was for an illegal item.
- Payments made before 7 October 2024 or more than 13 months before your claim is raised with us.
Even if your claim falls outside the new rules, you should still report it to us as soon as possible as you may still be reimbursed.
We review these claims on a case-by-case basis and may still refund you, fully or partially, depending on your circumstances and the steps you (and we) took at the time of the payment, including whether you paid attention to warnings we gave you, the steps you took to verify who you were paying and whether you’ve reported the scam to us promptly. We won’t refund you if you were involved in committing the fraud.
How long will it take to get your money back?
Every claim will be assessed on a case-by-case basis. Nationwide will consider the evidence presented by you, the firm you sent the money to and – where relevant – a third party, such as the police.
If your claim is valid, in most cases you should be reimbursed within five business days of making a claim. Business days are Monday to Friday, excluding Bank Holidays.
In some cases, where we need further information from you or someone else to assess your claim, it can take up to 35 business days for us to give you your money back.
How to protect yourself from APP fraud
Criminals are experts at impersonating people, organisations, and the police. They spend hours researching you, hoping you’ll let your guard down for just a moment. Stop and think. It could protect you and your money. Before making a payment, follow the advice from Take Five to Stop Fraud (opens in a new window):
- Take a moment to stop and think before parting with your money or personal information. It could keep you safe.
- Ask yourself, could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
- Do your research and be suspicious of any too-good-to-be-true offers or prices.
- Remember, Nationwide or the police will never ask you to transfer money to a safe account.
- If you’re unsure or are suspicious, then talk to a trusted friend or family member before making your payment.
When you are making a payment:
- Always follow any advice or warnings from Nationwide or the Police. We may ask you extra questions about a payment. This is to help keep you safe. Always answer these questions truthfully. If someone is asking you to lie or telling you what to say to your bank, then it’s very likely to be a scam.
- It might take slightly longer for a payment to leave your account. This is so Nationwide has time to do extra checks to keep you safe from fraud.
What should you do if you've been scammed?
Contact us at 0800 055 66 22 immediately if you have lost money in an APP scam.
It is important that you do this as soon as you realise that you may have been scammed as delays make it more difficult to recover your funds.
We may ask you for information or documents to help with your claim. It is best to co-operate fully with Nationwide and provide any requested information as soon as possible so that we can best manage and resolve your claim.
Being scammed can also be traumatic and upsetting, so be sure to ask for help and support if you need it. If you have been a victim of fraud and are finding it hard to recover from the experience, you can find further support at Age UK, Citizen’s Advice Consumer Service and Victim Support.