36 WWW.LAWYER-MONTHLY.COM | APR 2022 QUINCECARE DUTY EXPANDED: WHAT ARE THE IMPLICATIONS FOR BANKS? What is Authorised Push Payment Fraud? Authorised push payment fraud, or APP fraud as it is often known, is a common type of fraud that takes place when the fraudster deceives the unwitting victim into instructing their bank to transfer often large sums of money under false pretences into the account of the fraudster. The fraudster will almost always try to impress upon the victim a sense of urgency whereby they convince the victim that funds must be transferred as soon as possible to protect the victim’s money. Payments are often transferred instantaneously via BACS or Faster Payments, meaning that the fraudster could be long gone before the victim even knows what has happened. APP fraud is referred to as “authorised” because, from the bank’s perspective, the payment is authorised by the customer. Philipp v Barclays Bank UK PLC [2022] EWCA Civ 318 In March 2018 the appellant, Mrs Philipp, became a victim of APP fraud. Mrs Philipp, together with her husband Dr Philipp, were deceived by a fraudster known as JW. The result of the deception was that the couple moved over £700,000 of their savings into an account in Mrs Philipp’s name with Barclays Bank. Mrs Philipp attended a branch of Barclays in person and instructed Barclays to transfer the money to bank accounts in the United Arab Emirates in the name of Hannah Sharp Partner, Rosling King LLP 55 Ludgate Hill, London EC4M 7JW Tel: +44 0207-246-8000 E: hannah.sharp@rkllp.com www.rkllp.com The Quincecare duty is in the spotlight again as the Court of Appeal extends the scope of the duty imposed on banks in cases of authorised push payment fraud. Hannah Sharp, partner in Rosling King’s dispute resolution team, examines the case further and looks at the relevant duty of care. Quincecare Duty Expanded: What Are the Implications for Banks? Hannah Sharp is a partner in Rosling King’s Dispute Resolution Group specialising in financial services disputes, fraud and commercial litigation, both domestic and cross-border. Hannah has significant experience of acting for banks (investment and retail) and other financial institutions, corporates and ultra-highnet-worth individuals on a broad range of complex disputes. Rosling King LLP is a London-based law firm specialising in serving the needs of financial institutions, corporates and individuals.
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