Frequently Asked Questions - Authorised Push Payment (APP) fraud

The FAQs are set out to provide you with guidance in determining whether you have been a victim of APP fraud, the process for recording and reporting the fraud to us, and guide you through the process of reporting and claiming.

Below are a series of common questions related to the definition, determination and reimbursement process related to APP scams:

What is APP fraud or an APP scam

 

Answer: APP fraud scams involve the fraudster tricking their victims into willingly making large bank transfers to them. The fraudulent actors might use various methods to gain the trust of their victims, such as posing as a legitimate company or person, or using social engineering tactics to persuade a victim to transfer money.

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.

For example, they may pose as someone from your bank, or another trusted organisation, claim you have been a victim of fraud and say you need to move your money to a different bank account. Often there is a demand for the client to act quickly.

Other common scenarios involve a criminal impersonating a conveyancer and stealing money for a house deposit or pretending to be your builder to steal money saved to pay for renovations.

I suspect I am the victim of an APP Scam, what should I do?

Answer: 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 our Compliance Department on 020 3946 4935, available from 9am – 6pm, Monday to Friday (UK time), or email [email protected]. A prompt notification may assist the practical recovery of your money and/or allow us to take steps to prevent further losses.

 

Which payments are protected if I fall victim to an APP Scam?

 

Answer: If you are a Consumer Client 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 be:

  • Made on or after 7 October 2024
  • Made by us on your behalf to the account details you provided
  • Made in sterling
  • Made to an account that is not your account (and is not controlled by you)
  • Made in connection with an APP Scam in relation to which you were a victim
  • Made to a person that was not the person you intended, or for a purpose that was not the purpose you intended

 

If it is clear that you are a victim of an APP Scam in relation to a relevant payment made by SCEL on your authority by Faster Payment Service or by CHAPS we will reimburse the amount of the payment up to a maximum of £85,000, subject to deduction of an excess of £100.

How do I claim a reimbursement from Smart Currency Exchange Limited following an APP Scam?

 

Answer: Please contact our Compliance Department on 020 3946 4935, available from 9am – 6pm, Monday to Friday (UK time), or email [email protected]and we will contact you directly.

 

Contacting Us

If you have any questions or if you would like any further information, please feel free to contact our Compliance Department on 020 3946 4935, available from 9am – 6pm, Monday to Friday (UK time), or email [email protected].