Interim funding for APP scam victim compensation extended to June 2021

A group of seven signatories to the voluntary Authorised Push Payment (APP) Contingent Reimbursement Code have agreed to extend the interim funding to compensate eligible victims of APP scams.

The extension, agreed until 30 June 2021, is for cases where the customer, and sending and recipient banks, have met the standards expected of them under the Code.

The Code was launched on 28 May 2019, having been jointly developed by the banking industry and consumer groups – setting out increased consumer protection standards to help protect customers from APP scams.

Payment service providers that signed up to the Code committed to protecting their customers with procedures to detect, prevent and respond to APP scams, and to providing a greater level of protection for customers considered to be vulnerable to this type of fraud. Providers also committed to preventing accounts being used to launder the proceeds of APP scams, and to compensating customers if they fall victim to an APP scam – provided they did everything expected of them under the Code.

Since the Code was introduced last year, more than £89.2m has been reimbursed to thousands of customers, and banking body, UK Finance, is calling for further action to be taken with new legislation.

“Fraud is a crime which has a devastating emotional impact on victims and its proceeds fund serious criminal activities which damage our society,” said UK Finance managing director of economic crime, Katy Worobec.

“The industry’s primary focus is therefore on stopping fraud in the first place, supporting the prosecution of criminals responsible and helping customers know steps they can take to stay safe.

“It is right that those who fall victim to these scams through no fault of their own should be compensated. However, over a year since its launch, the voluntary Code is not working as intended, with a lack of consistency in customer outcomes and a lack of clarity for signatories in how they should implement it.

“While a long-term, system-wide solution to tackling this threat is developed, the seven Code signatories that have provided interim funding for compensation since launch have therefore extended this temporary arrangement for a further six months. This will give the government time to introduce new legislation and to engage with regulators on a long-term, sustainable funding model and we will continue to work closely with them to do so.”

    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.