Authorised Push Payment (APP) Fraud Information & Reimbursement Policy

What is an Authorised Push Payment (APP) Scam?

An Authorised Push Payment (APP) scam occurs when scammers deceive individuals or businesses into willingly transferring money to them. Unlike other types of fraud, where criminals gain unauthorised access to accounts, APP scams exploit trust by persuading victims to authorise payments themselves. These scams are often sophisticated and involve elaborate hoaxes, frequently using high-pressure tactics designed to create a sense of urgency. As a result, victims unknowingly bypass many of the security measures financial institutions have in place, making it a particularly challenging form of fraud to prevent.

Types of APP Scams

1. Malicious Payee: Victims are tricked into paying for goods or services that never materialise, believing the scammer is a legitimate provider.
2. Malicious Redirection: Victims are deceived into sending payments to scammers, thinking they are paying a trusted recipient.

Common Authorised Push Payment Scam Examples

• Invoice and Mandate Scam: Invoice or Mandate fraud takes place when you or an employee is deceived into changing a regular payment mandate (such as a direct debit, standing order or bank transfer), by the scammer purporting to be an organisation you make regular payments to such as a supplier, membership or subscription organisation and you willingly change the payment details.
• CEO Fraud: Scammers impersonate high-level executives, often known to the victim, to convince businesses to make urgent payments.
• Purchase Scam: Victims are tricked into making payments for goods or services online that never arrive or don't exist.
• Investment Scam: Victims are tricked into transferring money to investment schemes with promises of high returns, that may not exist or where the actualisation of profits are highly over stated or non-existent.
• Advance Fee Fraud: Scammers convince victims to make upfront payments for services or winnings that don’t exist, such as loans, job offers, or lottery wins.
• Impersonation Scams: Scammers pose as bank officials, police officers, or even friends and family to trick victims into authorising payments. These frauds are becoming increasingly advanced with the use of high quality deep fake videos or voice recordings.

Tips for Preventing APP Scams

1. Verify the Payee: Always double-check account details and avoid relying solely on email or text for verification.
2. Be Wary of Urgency: Scammers often create a false sense of urgency to rush you into transferring funds. Pause and verify before proceeding.
3. Don’t Share Sensitive Information: Banks or Payment Service Providers will never ask for full security details. Be cautious when sharing personal information.
4. Use Two-Step Verification: Enable two-factor authentication where applicable for online banking and set up transaction alerts.
5. Look for Payment Red Flags: Verify unfamiliar payee names, changed account details, or unusual invoices before transferring funds.
6. Check Website Security: Ensure websites are secure when making online payments.
7. Be Sceptical of Unexpected Communications: Treat unexpected requests for payments or financial details with caution.
8. Trust Your Instincts: If something doesn’t feel right, take extra precautions. If something seems too good to be true, it probably is.

Please visit the Stop, Think Fraud Government Website for valuable information and tips on protecting yourself from fraud and scams.

Customer Rights Under the New APP Scam Reimbursement Rules

From the 7th October 2024, Volt will reimburse its eligible customers who fall victim to APP scams, provided certain conditions are met.

Eligibility Criteria

• Business and commercial customers: 
  These rules apply to the following businesses that hold a Volt Account in the UK;
  • A micro-enterprise defined as an organisation which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed €2 million (or its equivalent in GBP);
  • A charity whose annual income is less than £1 million.
• Payments: This eligibility applies to payments sent to or from a UK account via the UK Faster Payments System (FPS).
• Timeframe: Payments made on or after 7 October 2024 are eligible. Scams must be reported within 13 months of the final payment to the scammer.
• Claim Limits: The maximum reimbursement per claim is £85,000. An excess fee of up to £100 will be applied by Volt.
• Exclusions: Certain situations, such as first-party fraud, gross negligence, international payments, and civil disputes, are not within the scope of the APP reimbursement rules. For a complete list of exclusions please see Annex 1.

Reporting an APP Scam Claim

If you become a victim of an APP scam, here’s what to expect when reporting a claim:

How to Report

• Use Volt’s online APP Fraud Reporting form which is accessible via this link.
• If you experience any difficulties completing our online form, please contact our team at support@volt.io. 

Claim Process

1. Acknowledgement: Once your claim is received, you’ll get confirmation within 24 hours, and we will guide you through the process.
2. Investigation: We will collect information and investigate the claim, keeping you updated via email.
3. Outcome: You will be informed of the claim decision no later than 35 business days from the date we received your claim. If approved, the reimbursement will be credited to your Volt account.

Unsatisfied with the Outcome?

If you’re not happy with the outcome, you can escalate concerns through Volt's Complaints Policy.

Protecting Yourself from APP Scams

We encourage customers to take precautions when making payments and stay informed about fraud risks.

How We Help

• Stay Alert: Follow any warnings or alerts from Volt, service providers, or relevant authorities.
• Report Scams: Contact your Payment Service Provider immediately if you suspect you’ve been targeted.
• Support Recovery Efforts: Volt may share relevant information with the receiving Payment Service Provider (PSP) to help recover your funds.
• Involve Law Enforcement: You can also report the scam to the police via Action Fraud or allow Volt to do this on your behalf.

For more information or assistance, contact our Customer Support Team at support@volt.io.

Annex 1 - Full List of Exclusions

In certain circumstances your claim may be rejected by Volt. We will assess this as part of our investigation. The list of exclusions are:

• First party fraud: The scam involved the account holder directly.
• Gross negligence:
  • To have regard to any interventions given by your Payment Service Provider or competent national authority;
  • To promptly report the scam to your Payment Service Provider upon learning or suspecting of falling victim to a scam;
  • To comply with appropriate information requests from your Payment Service Provider to support the assessment of the claim;
  • To report to the Police or allow your Payment Service Provider to do this on your behalf.
• Time exclusions: Payments made before 7 October 2024 and APP claims submitted more than 13 months after the final payment to the scammer will not be accepted under the new rules.
• International payments or payments which take place across other payment systems.
• Scam payments made using cheques and cash.
• Payments made to an account the consumer controls, or payments that are not authorised by the consumer (‘unauthorised payments’).
• Civil disputes.
• Where payments are sent or received by credit unions, municipal banks and national savings banks.