The ongoing risks and challenges of APP fraud and the Quincecare duty

Authorised Push Payment (APP) fraud figures remain high, with recent research showing around 200,000 reported cases and losses reaching over £300 million annually. This type of crime is notoriously difficult for banks to tackle because the victim seemingly consents to the transaction by giving payment instructions albeit under false pretences. Claims cost the banking sector millions in compliance and legal costs and remain one of the highest priority risk areas for retail banks.

Two developments that have altered the legal landscape in relation to APP fraud are important. First, the introduction of a mandatory reimbursement scheme (the Scheme), which allows many victims of APP fraud to claim losses from the sending bank that processed the outbound payment. Secondly, the Supreme Court decision in Philipp v Barclays Bank Plc, which has limited the common law duties that banks owe customers in relation to losses flowing from fraudulent payment instructions that are not covered by the Scheme.

In this briefing, Piers Reynolds and Laura Feldman from Freshfields' London Financial Services Disputes Group examine the evolving case law on the Quincecare duty, including attempts to expand its scope, practical compliance considerations for financial institutions, and alternative avenues of liability.

This briefing was originally published in the Journal of International Banking Law and Regulation in the October 2025 issue.