Small charities that have experienced fraud have been urged to reclaim lost funds through their banks and others under a recently introduced scheme.
National Fraud Helpline solicitors said “very few charities” are aware of the authorised push payment fraud (APP) reimbursement scheme which came into force on 7 October.
The scheme, introduced by the Payments Systems Regulator (PSR), mandates banks and other payment service providers to reimburse victims of APP fraud carried out through the faster payments system and Clearing House Automated Payment System up to £85,000.
It applies to charities with an income of less than £1m per year and that match the definition of a charity under the Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 or the Charities Act (Northern Ireland) 2008).
‘Very few are aware’ of the scheme
Martin Richardson, senior partner at National Fraud Helpline solicitors, said: “This mandatory reimbursement scheme for fraud victims covers more than 95% of the UK’s charities but very few are aware of it.
“Although the PSR scheme only covers up to £85,000 of lost funds, the Financial Ombudsman Service can order banks to pay up to £430,000.
“Banks should be highlighting the fact that this scheme exists. It’s important that charities are aware of the fact that if they fall victim to fraud then there is help.”
Richardson added that “every organisation is vulnerable to scams, particularly as the fraudsters become more ever more sophisticated and take advantage of technological advances”.
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