Need to know

• Authorised push payment (APP) fraud is one of the fastest-growing financial crimes, where victims are tricked into sending money to fraudsters.

• The 2024 reimbursement scheme introduced by the Payment Systems Regulator gives victims a safety net.

• High-stakes transactions in areas like conveyancing and family law make law firms prime targets, with clients often moving life-changing sums.

Welcome to TSL’s Weekly Edge, whether you’re aiming for a regional or high-street practice, or just want to get a feel for how law works in the real world beyond textbooks, you’re in the right place. 

No corporate jargon, no massive deals, just real useful information designed to give you that extra edge in your legal journey.

🧠Wilson’s Weekly Wisdom

When I started out, I joined a firm specialising in insurance law. One office in England, laser-focused on a niche area. Not exactly the high-street all-rounder or City giant you might imagine when you think of a “legal career start.”

But here’s the thing: that niche gave me depth. Instead of skimming the surface of lots of areas, I got stuck into one properly. That meant I developed sharper strategic thinking early on and had far more client exposure than some of my peers in bigger firms.

It’s a trade-off no one really talks about. Yes, I didn’t get the full buffet of legal departments, but I did get to roll up my sleeves, take responsibility, and actually feel like a solicitor, not just a note-taker.

Smaller, specialist firms often throw juniors in at the deep end in the best kind of way. You’re more hands-on, more visible, and more trusted. That kind of experience? It’s gold. And it’s something the big commercial firms don’t always deliver early on.

💡Spotlight Article

Fraud makes up over 40% of all crimes against UK individuals.

Its scale and sophistication have grown so much that the Royal United Services Institute (RUSI), the UK’s leading defence and security think tank, has branded it a national security threat. 

One of the fastest-growing types is Authorised Push Payment Fraud (APP) fraud, which cost victims a combined loss of more than £450 million in 2024 alone.

Losses can mount quickly because the victims often unknowingly participate in the scam. Instead of accessing your accounts and stealing money directly, APP fraudsters trick you into transferring money to them by pretending to be trusted payees.

So what’s actually being done about it?

Let’s explore the latest development that has shaped the money recovery process, and how private client solicitors can help.

🔎What’s happening? 

APP fraud hasn’t stood still in 2025!

Regulators and policymakers are dutifully stepping in to bring more transparency and protection for consumers.

The Payment Systems Regulator (PSR), the watchdog set up by Parliament to keep the UK’s payment systems safe and secure, introduced the APP fraud reimbursement requirement scheme in 2024. 

The scheme forces banks and payment service providers (PSPs) to reimburse most victims of APP fraud for losses of up to £85,000 per claim.

Why is this so important?

It is important because of how APP scams work in real life.

Imagine receiving an urgent email from your solicitor asking for immediate payment to secure a property. Or your “bank” calls, claiming your savings are at risk and need to be transferred to a “safe” account. Or maybe it’s something as ordinary as someone selling tickets to a sold-out gig that everyone, including yourself, wants to go to.

In each case, the victim authorises the payment themselves, usually via Faster Payments, which moves money in near real-time. The funds often pass through “money mule” accounts within minutes, making it difficult to trace and recover them.

The PSR scheme gives victims a safety net, as long as the fraud is reported ASAP and the consumer hasn’t acted recklessly. It also nudges banks and PSPs to step up their fraud prevention game, with early data showing faster refunds and better cooperation between firms.

❓ Why it matters to high street firms

Although the PSR’s refund plan is for banks, it’s bound to change the advice solicitors give.

First - The legal practice is not immune to APP fraud.

Conveyancers and family solicitors often see clients moving life-changing sums of money, and fraudsters know it! 

A hacked email or fake invoice can wipe out life savings in minutes. Law firms should really stay on top of things by double-checking payment instructions, warning clients not to believe everything in their emails, and keeping excellent notes of all the advice they give to their clients.

Second - The scheme shifts client expectations.

Someone who has just lost money will want their solicitor to explain not only whether refunds are possible, but also how the process works and what gaps remain. 

And perhaps more than anything, clients need solicitors who can keep them level-headed and give them a quick bit of reassurance when they’re at their most vulnerable. 

Third - There’s the angle of risk management.

Even if banks carry the main duty to reimburse, law firms could still face awkward questions if a client feels their solicitors didn’t do enough to protect them. 

Clear office customs and regular client warnings are best practice and, importantly, fall-back options against would-be issues.

Money Mules

These are people who (knowingly or unknowingly) let fraudsters use their bank accounts to move stolen money around.

It’s less noticeable if money is transferred to a long-standing account that, up until that point, has been used for genuine reasons.

Essentially, they haul cash for criminals, minus the cute ears and tail!