Push payment fraud is on the rise. According to UK finance, in 2022 push payment fraud cost their members around £500 million.
Push payment fraud is where scammers trick individuals into transferring money to them, using tactics like fake online shopping deals, investment opportunities, and romance scams.
To keep yourself safe, verify payment requests independently and report any suspicious activity to us immediately.
New UK regulations now require payment service providers to reimburse victims within five business days, protecting you better from fraud. Stay informed and vigilant to safeguard your finances.
In this guide, we’ll take you through all the ways you can protect yourself from fraud and the ways we protect you.
What is push payment fraud?
Push payment fraud is a scam where criminals deceive you into sending money to them under false pretences. Push payment fraud is becoming more common, so it’s important to learn how to protect yourself and your money.
Protect yourself from push payment fraud
Here are some tips to help you better protect yourself from falling for this fraud:
Pause and reflect: If you’re being pressured into quickly making a payment, stop and think. Ask a trusted friend or family member if you’re unsure. After all, it’s your money and a genuine company won’t mind you checking with someone before making the payment.
Question unusual requests: Is the payment request genuine? Always verify by independently contacting the company or individual using a number you've sourced yourself.
Be sceptical: Be wary of phone numbers because scammers can fake them to seem legitimate. Don't trust a phone number at face value.
Verify unexpected bank calls: If you receive an unexpected call from your bank, dial 159 to confirm the call's authenticity.
Too good to be true? If an offer seems too good to be true, it probably is. Be cautious of unrealistic promises and deals.
Do your research: Before parting with your money, check independent reviews and confirm the company is part of the relevant regulatory body. For financial services, make sure they're registered with the FCA.
By staying vigilant, you can reduce the risk of falling victim to push payment fraud.
Types of push payment fraud
There are a number of push payment frauds which could happen. Here are some you should look out for:
Online shopping scams: Scammers lure you into transferring money for non-existent items such as event tickets, clothing, or vehicles, often via social media and marketplace sites.
Investment scams: Fraudsters promote fake investment opportunities with unrealistic returns. They may contact you directly, pretending to be from legitimate groups or endorsed by celebrities.
Romance scams: Scammers create fake profiles on dating sites or social media to trick you into sending money, pretending to be in a relationship with you.
Impersonation scams: Scammers pose as trusted figures:
- Safe account scams: Pretending to be your bank, law enforcement, or internet provider, they ask you to move money to a "safe" account.
- HMRC/Court impersonation: They demand payments for supposed tax debts or fines, threatening arrest or deportation.
- Family/Friends impersonation: Hacking social media accounts or using new numbers, they ask for urgent money for emergencies.
CEO fraud: Impersonating senior executives, scammers trick employees into making urgent payments.
Invoice redirection scams: Fraudsters hack into business emails and request payments to fraudulent accounts, posing as genuine vendors.
Advance fee scams: Scammers ask for upfront fees for services like loans, lottery wins, or jobs that don’t actually exist. Avoid paying for anything like this upfront.
Stay vigilant and verify requests independently to protect yourself from these scams.
How Altery protects you from push payment fraud
At Altery we work hard to protect you from push payment fraud. Here are some ways we do this:
Real-time fraud detection
Our advanced systems analyse transactions instantly to spot suspicious activities, so we can respond quickly and minimise the impact on you.
Communication
Our Customer Service team is available via messaging or phone. For vulnerable customers or scam victims, our skilled support team provides prompt assistance.
Trusted device feature
When logging in or making payments, you'll need to verify via your trusted device. This reduces the risk of unauthorised access.
Customer education
We regularly update you on how to recognize and avoid fraud through emails, in-app messages and our website.
Staying up-to-date
We stay informed about the latest industry standards and best practices in fraud prevention to ensure your protection is top-notch.
New rules to tackle push payment fraud
In response to the growing threat of push payment fraud, UK regulators have introduced new rules to better protect consumers and ensure that victims have a clear path to reimbursement.
Key changes
- Mandatory reimbursement: From October 7, 2024, payment service providers (PSPs) must fully reimburse victims of APP fraud within five business days.
- Stop the clock provision: If the PSP has requested more information to assess a claim, the five-day reimbursement period is paused until the required details are received. This means that the claim may take up to a maximum of 35 working days.
- Claim handling and reporting: PSPs must have systems to log, process and settle claims efficiently. They are required to share information between sending and receiving PSPs to facilitate the reimbursement process.
- Exceptions to reimbursement: Reimbursement is not required if the customer acted fraudulently or with gross negligence, unless the customer is considered vulnerable.
- Vulnerable customers: PSPs must identify and protect vulnerable customers, ensuring they receive appropriate support and are not subject to the standard claim excess.
- Time limits and claim excess: Customers must report APP fraud within 13 months of the final payment. PSPs can apply a claim excess up to £100 to encourage vigilance but cannot apply this to vulnerable customers.
- Regulatory oversight: The Payment Systems Regulator (PSR) will oversee compliance with these rules, including amendments to the Payment Services Regulations 2017 (PSR 2017).
Push payment fraud is a growing concern for consumers in the UK. From fake investment opportunities to impersonation, this fraud takes many faces.
To sum up
Protect yourself by checking payment requests independently, being sceptical of unexpected requests and reporting suspicious activity to us immediately. New UK regulations now ensure payment service providers reimburse victims within five business days, increasing consumer protection.
At Altery, we use real-time fraud detection, trusted device verification and continuous consumer education to keep you and your money safe. Your security is our top priority.