Authorised Push Payment (APP) fraud

The FAQs are set out to provide you with guidance in determining what APP fraud is, how it can be avoided, the process for recording and reporting fraud to us, and how to claim a reimbursement.

What is APP fraud or an APP scam?

Authorised Push Payment (APP) fraud is the most common type of financial scam in the UK.

It works simply by tricking individuals and businesses into sending money under false pretences. Fraudulent actors might use various methods to gain the trust of their victims such as:

• Impersonation scams: This is where criminals pose as a legitimate individual or company to trick consumers into transferring them money.
• Investment scams: This is when criminals convince victims to ‘invest’ with promises of high or guaranteed returns.
• Purchase scams: With a purchase scam, fraudsters offer goods and services that never materialise. This type of fraud is typically carried out online, often through social media or fake websites that mimic legitimate brands.
• Romance scams: This is when imposters enter into an online relationship with their victim before requesting money, often using an emotionally manipulative ‘backstory’.

Unlike other types of fraud, the victim voluntarily authorises the transfer of funds, often through online banking or over the phone. This makes it more difficult to recover the money and can leave the victim with significant financial losses.

How to avoid APP fraud

IMPORTANT: If you have any concerns about a payment that you have been requested to make please contact your payee directly using a telephone number from a trusted source or official website in order to verify their account details.

By learning to spot the manipulative tactics employed by fraudsters, consumers can protect themselves. Here are a few key warning signs that you may be looking at a scam:

• Changes to account details: If a company or individual you have dealt with in the past is asking you to use a new account with a different name and/or account number, the request might not be legitimate. If in doubt, it’s best to get in touch with them directly. 
• An offer is too good to be true: Fraudsters may lure in consumers with promises of cheap deals. If something seems too good to be true, it probably is.
• Strange communication: Fraudsters often impersonate a legitimate business or government body. If you receive a communication from a familiar organisation that doesn’t seem right, get in touch directly to check if the communication was from them.
• Pressure to make a payment: Fraudsters often manipulate would-be victims by pressuring them to act quickly, with promises of limited-time offers, or warnings of negative consequences if action isn’t taken. If you are being asked to transfer money or provide personal details urgently, you may be the target of a scam.
• Requests for personal information: If you receive an email or text message asking you to provide personal information such as a password or address, do not provide them. Genuine companies will never ask you to send these details over text or email.

Which payments are protected?

If you are a client of Regent Foreign Exchange Limited then certain payments which we make on your behalf may be eligible for protection under the Reimbursement Requirement of the Payment Services Regulator in the event of you falling victim to an APP Scam.

To be eligible, a payment must have been sent:

• by a client that qualifies as a consumer
• on or after 7 October 2024
• by Regent Foreign Exchange on our client’s behalf to the account details they provided
• in sterling (GBP)
• by Faster Payments or CHAPS
• to an account that is not our client’s account (and is not controlled by them)
• in connection with an APP Scam in relation to which our client is a victim
• to an account that does not belong to the account holder our client intended to pay, or for a purpose that was not the purpose they intended

If you believe you are the victim of an APP scam

If you know or suspect that you may be a victim of an APP Scam it is important to notify us as soon as possible. Please do so by contacting us on +44 (0) 203 750 0605 and asking for our Compliance Department, available from 9am – 5pm, Monday to Friday (UK time), or email compliance@regentfe.com.

A prompt notification may assist the practical recovery of your money and/or allow us to take steps to prevent further losses.

How much is covered?

If it is clear that you are a victim of an APP Scam in relation to a relevant payment made by Regent Foreign Exchange Limited on your authority, we will reimburse the amount of the payment up to a maximum of £85,000, subject to deduction of an excess of £100.

How to claim a reimbursement from Regent Foreign Exchange Limited following an APP Scam?

Please contact us on +44 (0) 203 750 0605 and ask for our Compliance Department, available from 9am – 5pm, Monday to Friday (UK time), or email app_fraud_claims@regentfe.com.