New Regulatory Protections Against APP Fraud

At Tompay, protecting your funds is our priority. With new regulations coming into effect on 7 October 2024, GBP payments made through the Faster Payments System between UK payment accounts held with participating payment service providers, including those for individuals, microenterprises, and charities, will benefit from clearer protections in cases of Authorised Push Payment (APP) fraud. These changes provide better support for victims of fraud and ensure a more transparent process for reimbursement.

The protections described below apply in accordance with the reimbursement requirements introduced by the UK Payment Systems Regulator (PSR) for the Faster Payments System. Eligibility for reimbursement is determined in accordance with applicable regulatory rules and the circumstances of the transaction.

What is APP Fraud?

APP fraud occurs when someone is tricked into authorising a payment to a scammer. This can happen through various methods, such as impersonation, fake investments, or fraudulent purchase offers. Victims usually believe they are transferring funds to a legitimate account, but instead, the money is sent to fraudsters.

Key Points of the New Regulation

Eligible Transactions

The new regulations apply to GBP payments made through the Faster Payments System (FPS) and include both outgoing and incoming transactions. Claims are only eligible for payments made between accounts within the UK. This includes payments made by:

• Individuals
• Microenterprises (fewer than 10 employees and annual turnover and/or balance sheet total of less than €2 million)
• Charities (with an annual income under £1 million)

How to File a Claim for APP Fraud?

If you believe you've been a victim of APP fraud, you can submit a claim by contacting the Customer Support Team at support@tompayment.com. Please provide detailed information about the transaction and any evidence of fraud, such as receipts, invoices, or other relevant documents.

Steps to file a claim:

1. Contact the Tompay Customer Support Team at support@tompayment.com or submit a complaint through the contact channels available on our website.
2. Provide detailed information about the fraudulent transaction, including any supporting evidence.
3. Tompay will investigate your claim, and we may request additional information if needed.
4. If your claim is valid, reimbursement will be processed within 5 business days after we receive all necessary details.

Reimbursement Details

1. Reimbursement Limit
   Reimbursement may be available up to a maximum limit of £85,000 per APP fraud claim, subject to eligibility requirements under the PSR reimbursement rules.. The previous limit of £415,000 is being reconsidered to align with evolving standards.
2. Time Limit for Claims
   You must report the fraud to Tompay within 13 months of the fraudulent transaction to be eligible for reimbursement. Only transactions made on or after 7 October 2024 qualify for these protections.
3. Processing Time
   Where a claim is assessed as eligible under the applicable reimbursement rules, reimbursement will normally be made within five (5) business days after the investigation is completed and all required information has been received.. In certain circumstances permitted under regulatory rules (for example where additional information is required or where there are reasonable grounds to suspect fraud), the investigation period may be temporarily paused. In such cases the investigation may take up to 35 business days.
4. Shared Responsibility
   Under the regulatory framework, responsibility for reimbursement may be shared between the payment service providers involved in the transaction.. This helps mitigate the financial impact of APP fraud on both sides.
5. Optional Excess
   In accordance with the reimbursement rules, Tompay may apply an excess of up to £100 to certain claims. This excess will not apply to customers identified as vulnerable.

Consumer Standard of Caution

To be eligible for reimbursement, non-vulnerable customers** must meet the Consumer Standard of Caution, which includes:

• Heeding Warnings: Following any specific warnings or advice provided by Tompay or relevant authorities.
• Prompt Reporting: Reporting the scam to Tompay within 13 months of the final fraudulent payment.
• Providing Information: Cooperating with Tompay by providing all requested information to support the investigation.
• Police Reporting: Allowing Tompay to report the scam to the police or agreeing to report it yourself.

Exclusions from Reimbursement

There are certain circumstances where APP fraud claims will not be reimbursed, including:

• First-party fraud: When the customer is complicit in the fraud.
• Gross negligence: Failure to meet the Consumer Standard of Caution as defined under the applicable reimbursement rules.
• Payments made before 7 October 2024: Transactions before this date are not covered.
• International payments: Payments sent outside the UK are not eligible.
• Payments via other systems: Only Faster Payments transactions are covered, excluding payments through other channels.
• Unauthorised payments or civil disputes: Disputes over goods or services that were legally paid for are not eligible.
• Transactions with credit unions, municipal banks, or national savings banks: Payments involving these institutions are excluded from the reimbursement policy.

How to Protect Yourself from APP Fraud

Though Tompay provides protections against APP fraud, it's important to remain vigilant. Fraudsters are continually developing new tactics to deceive consumers. Here are some tips to help protect yourself:

• Stop and Think: Before making any payment, pause and consider whether the request might be fraudulent.
• Verify the Source: Double-check the identity of the person or company requesting payment. Scammers often impersonate trusted entities.
• Don't Be Rushed: Scammers often create a false sense of urgency. Take your time to verify any payment requests.
• If you believe you've been targeted by scammers, contact Tompay support immediately at support@tompayment.com.