APP fraud and Philipp v Barclays - a temporary reprieve for banks

The highly-anticipated Supreme Court decision in Philipp v Barclays was handed down on Wednesday 12 July. This is a significant judgment on the scope of bank liability for fraud under the ‘Quincecare duty’.

The outcome will be welcomed by banks, with confirmation that the Quincecare duty does not extend to APP and related scams where the customer is a natural person, rather than a corporate acting through its agents.

Relief will be short lived, however, as this decision coincides with regulatory changes which will make compensation for APP fraud victims mandatory from Q1 2024.

Members of our Litigation, Contentious Regulatory and Financial Crime teams discussed the following during the flash call:

• Key take-aways from the Philipp judgment;
• How these interact with the introduction of mandatory reimbursement for APP fraud;
• The impact of the proposed criminal offence of failure to prevent fraud; and
• What this means in practice for banks and their customers.