APP Fraud - Warning Failures

Bank failed to provide adequate fraud warning before payment

Mandatory ADR
Max award: £445,000 (from 1 Apr 2025)
8 weeks firm; FOS 6 months
Uphold rate: 34% (FOS 2024/25)

Key Legislation

FCA BCOBS; PSR Mandatory Reimbursement Rules; Consumer Duty — BCOBS 5A; Consumer Duty PRIN 2A; PS24/7

Complaint Route: Financial Ombudsman Service

Type: Ombudsman (binding on firm)

Max award: £445,000

Uphold rate: 34%

Average resolution: 180 days

Pre-conditions: Complain to firm first; firm has 8 weeks to resolve; then refer to FOS within 6 months of final response

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Companies in This Sector

All UK banks and payment service providers

Annual complaint volume: 305,726 (FOS 2024/25 total)

Note: Compensation range: Full loss + D&I £200-£1000 if warnings inadequate

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Coverage

Tier 1 — Financial (FOS expertise)