New APP Fraud Regulations and Confirmation of Payee

The Payment Systems Regulator (PSR) has expressed a need to see more action from financial institutions to stop Authorised Push Payment Fraud (APP Fraud) scams from happening and to better protect people if they do fall victim. As a result new regulation regarding victims of APP Fraud was introduced with effect from 7 October 2024. You can find out more about the APP Fraud scheme and what we are doing to combat this type of fraud here.

What does this regulation mean?

The new regulation means that should you fall victim to APP Fraud, the payment service provider will reimburse you, subject to guidelines, excess and maximum levels set out by the PSR. More information can be found on the PRA website.

How does this work?

If you have an eligible APP fraud claim, the new rules mean we’ll reimburse you within 5 business days, but for more complex cases this could take up to 35 business days.

Any claims you make under the scheme may be subject to an excess (currently set at £100). Whether the excess is payable will be decided by reviewing your personal circumstances, including the circumstances on which the fraud took place and your ability to protect yourself while making a payment.

The new APP fraud regulations do not cover all types of payments, such as cheque, cash, and international payments. We will also assess whether the claim has been misrepresented or falsified, is a civil dispute, was for an unlawful service, or whether you acted with gross negligence.

All fraud claims must be reported within 13 months after the final payment to the fraudster, with transactions made prior to the effective date of 7 October 2024 not being covered by the new rules. If you have fallen victim to fraud but are not covered by the new APP Fraud regulations, you should  still report it to us as soon as possible so we can investigate and assess whether we’ll reimburse you.

Our Terms and Conditions will be updated to reflect these changes.

What should I do if I think I have been a victim of fraud?

If there is a crime in progress or if you’re in danger contact the police immediately by dialling 999.

If you think your Melton Building Society account may be at risk of fraud, please report it to us as soon as possible by calling 01664 414141. You should also contact Action Fraud, you can do this by calling 0300 123 2040 or by visiting www.actionfraud.police.uk.

How can I protect myself?

Please see the Protect yourself from scams and fraud page for information on how you can keep your account safe and secure from the threat of fraud.