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Bank not liable for APP Fraud

The Supreme Court ruled that Barclays could not be held responsible for fraudulent payments that were authorised by the customers themselves.  This applies even if the customers were the victims of an Authorised Push Payment (“APP”) fraud.  The court was unwilling to extend the scope of the so-called Quincecare duty to this set of circumstances.

In overturning the previous unanimous judgment of the Court of Appeal, Lord Leggatt said: “Where the customer has authorised and instructed the bank to make a payment, the bank must carry out the instruction promptly….It is not for the bank to concern itself with the wisdom or risks of its customer’s payment decisions.”