FCA introduces new rules to protect victims of fraud

The Financial Conduct Authority (FCA) has recently published new rules which allow victims of authorised push payment (APP) fraud to complain to the payment services provider (PSP) receiving their payment.

In the occurrence of APP fraud, the PSP is usually a bank which holds the accounts of either the victim or fraudster. Currently, the sending PSP, but not the receiving PSP, must handle these complaints in line with existing complaints handling rules in the FCA handbook.

However, these obligations have now been extended to the receiving PSP and victims can refer their complaints to the Financial Ombudsman Service if they are not satisfied with the outcome. The regulator has announced that the new rules will be enforced from 31 January 2019.

Commenting on the amendment, FCA executive director of strategy and competition Christopher Woolard: “The FCA takes APP fraud and the harm it causes to consumers very seriously. Now victims of APP fraud can make a complaint to the PSP receiving their payment and if they’re not satisfied with the outcome, can refer their complaint to the Financial Ombudsman Service.”

APP fraud occurs when a fraudster deceives a payer into making an APP to an account controlled by the fraudster, with data published by UK Finance revealing that there were 43,875 cases of APP fraud and total losses of £236m in 2017.

Following a complaint from Which?, the FCA and Payment Systems Regulator (PSR) investigated APP fraud and found that receiving PSPs could do more to identify fraudulent incoming payments and prevent accounts from being compromised by fraudsters. The regulator expressed that it shares concerns with the PSR regarding the growth in the number of APP fraud attempts, acknowledging that it is becoming a growing problem.

Separately, a steering group established by the PSR is developing a voluntary industry code, which aims to set standards for PSPs to prevent and respond to APP fraud and reimburse victims of APP fraud in certain circumstances.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.