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Can you get your money back after a “push” fraud?

cybercrime solicitors

Last week, an article revealed the sad case of a widow who was conned into losing her mother’s care-home fees. In a highly-sophisticated cybercrime attack, the woman was defrauded of £20,000 in a so-called “push” scam.

What is push fraud?

Push fraud – also called authorised push payment (APP) scams – happen when criminals deceive individuals into sending them money. Because the victim believes the fraudster to be trustworthy and genuine, they authorise the handover of cash. The money is then quickly transferred by the fraudster to different accounts, often abroad, which makes getting it back almost impossible.

Common types of push payment scams include:

  • Sending falsified invoices that look exactly like ones victims are expecting (e.g. from a child’s school or a legitimate tradesperson)
  • Convincing people to transfer money to someone official, such as a solicitor (e.g. when buying a house)
  • Conning people to transfer cash into fraudulent bank accounts
  • Sending emails pretending to be from a friend asking for money.

While in many cases, the criminals involved might call hundreds of people in the hope of tricking someone, often these cybercrime scams are highly targeted and come after hacking a victim’s emails to identify the information needed to defraud them.

In this latest case, the criminal claimed to be from the Royal Bank of Scotland fraud team flagging up unusual transactions. The fraudsters ran through some security questions to extract the information they needed to access her online banking and rename her current account “frozen”. So, when the woman went to check via the proper channels, it did appear that her account had been locked. In a following call, she was then asked to move her balance to a new “protected” account. But when she called RBS to check the transfer went through okay, they knew nothing about it.

The rising problem of push fraud

The problem of transfer fraud is increasing in the UK. Indeed, according to consumer group Which? in the first two weeks after launching an online cybercrime reporting tool, more than 650 people came forward claiming a loss of over £5.5 million.

Overall, the latest official figures show that over £100 million was unknowingly handed over to criminals through push scams between January and June last year. Over this period around 17,000 people were victims of these scams, and they lost an average of £3,000 each.

How to protect yourself against push fraud

To keep you safe, UK Finance offers the following advice:

  • Never disclose security details such as your PIN or full banking password
  • Don’t assume an email, text or phone call is authentic
  • Just because someone knows some personal information about you (i.e. your mother’s maiden name), that doesn’t mean they are genuine
  • Banks or other trusted organisations will never contact you and ask for your PIN or full password, or ask you to transfer money to a safe account
  • Don’t be rushed into handing over sensitive information, take the time to contact the company directly using a trusted email or phone number to check the request is genuine
  • Listen to your instincts. If something doesn’t feel right don’t be pressured into making a decision there and then
  • Never automatically click on a link in an unexpected email or text.

Are the banks liable?

According to the banks, they make it very clear that customers should never make a payment at the request of someone over the phone or email. So, while millions have been lost by unwitting victims, because the transfers were authorised, until now banks have been unable (or unwilling) to return nearly 74% of the money.

Don’t be fobbed off by the banks!

If you have been the victim of a push fraud and need help getting your money back, there is some good news. Under new plans, the regulator is coming down on the side of consumers and people tricked into transferring money directly to a fraudster can expect stronger protections.

A new industry code will be in place from September, helping victims of such scams to secure compensation. What this means in practice is that victims of push scams can be confident that any claim for reimbursement will be given fairer consideration.

If you want to claim compensation following a push payment scam or another type of cybercrime, Hayes Connor can help. Our professional, friendly team will be pleased to answer any questions you might have, and advise you on whether you have a valid claim.

 We can help you to claim compensation from the fraudster, your bank, and any organisation that may have put your data at risk (where this data was then used to facilitate a push scam).

Start your claim

2 replies
  1. Prisca Dossou
    Prisca Dossou says:

    Victim of online transfer, in 2016, the banks refuse to help . Because as they said they just executed my instructions. I totality desagre with that but the bondsman are on the bank side. This is not fear. I’m the victim . I lost £50000 , this experience has change my life up th now. I’m still paying three different credits a very months for those money one else work away with because the banks have not done their job properly. I wanna the banks to court, because I believe they have done everything to protect me against the scam. I gave company name and address and a account number. After they sent the money to scammers, they told me , sorry we don’t check the manes , we just check the account number. Please can you help me ?

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