Barclays won a UK Supreme Court case over push payment fraud on July 12, 2023. The case was brought by Fiona Philipp, who was tricked into transferring £700,000 to accounts controlled by fraudsters in the United Arab Emirates. Philipp alleged that Barclays owed her a duty to not carry out her instructions if the bank had reasonable grounds to suspect fraud.
However, the Supreme Court unanimously upheld Barclays’ appeal, ruling that banks do not have a duty to protect customers from fraud in this way. The ruling is a major victory for the banking industry, which has been facing increasing pressure to compensate victims of push payment fraud.
Push payment fraud is a type of fraud where the victim is tricked into authorizing a payment to a fraudster. This can be done through a variety of methods, such as phishing emails, phone calls, or text messages. The Supreme Court’s ruling means that banks will no longer be liable for push payment fraud unless they have been negligent in some way.
This ruling is likely to make it more difficult for victims of push payment fraud to get their money back from their banks. However, it is important to note that the Supreme Court’s ruling does not mean that victims of push payment fraud are completely out of luck.
The Payment Systems Regulator (PSR) has rules in place that require banks to reimburse victims of authorized push payment fraud in full, as long as they have not been what the Financial Ombudsman (FOS) calls ‘grossly negligent’. If you have been a victim of push payment fraud, you should contact your bank as soon as possible.
You should also report the fraud to the PSR. The PSR may be able to help you get your money back from your bank.
