Barclays has emerged triumphant in an appeal that could potentially limit the ability of victims of authorized push payment (APP) fraud to seek compensation from their banks. The Supreme

Court ruling has raised concerns among lawyers who believe it will curtail the scope for such claims against financial institutions.

Fiona Philipp, a long-time customer and music teacher, sued Barclays in 2020 after falling victim to a scam that led her to transfer £700,000 to what she believed were legitimate accounts in the United Arab Emirates. While the court dismissed her claim that the bank should have suspected fraud, it granted her permission to pursue an alternative case against Barclays for its failure to adequately recover the funds. APP fraud has become the most prevalent type of payment fraud in the UK, costing customers £583 million in 2021.

The decision is expected to shift the responsibility back to customers to ensure the authenticity of payment instructions. Barclays has welcomed the ruling, citing the clarity it provides on an issue of public importance. Photo by Peter Broster, Wikimedia commons.