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New UK Fraud Rules Set to Empower Victims

January 31, 2019 / Phil Muncaster

New rules come into force in the UK today designed to provide consumers with stronger powers of redress in the event they fall victim to authorized push payment (APP) fraud. Regulator the Financial Conduct Authority (FCA) has mandated that fraud victims can now complain to the bank that receives funds sent in error to a scammer, as well as their own bank. Both banks have to receive the complaint, with the consumer able to escalate their case to the Financial Ombudsman Service (FOS) if they’re not happy. APP fraud occurs when an account holder is tricked into making a payment to another account, such as in BEC or CEO fraud. There are two main types: with malicious payee fraud the victim authorizes a payment for what they believe to be legitimate purposes, but it’s actually a scam; while in malicious redirection the victim intends to pay a legitimate payee but the fraudster directs them to pay a third party instead.