Consumer standard of caution
The UK APP reimbursement exception for consumers who, with gross negligence, ignore specific expectations.
The consumer standard of caution is an exception in the UK APP fraud reimbursement rules: a sending firm may refuse reimbursement if the consumer, with gross negligence, failed to meet expectations such as heeding specific warnings from their firm, reporting the scam promptly, sharing requested information and reporting to the police when asked. The exception does not apply to consumers who were vulnerable at the time. How it would apply when an agent, not the consumer, received a warning is an open question.
Agent Minute explains this term on 19 January 2027.
Related terms
APP fraud reimbursementUK rules requiring payment firms to reimburse victims of authorised push payment scams, within set conditions.Gross negligenceA serious failure of care by a payer that can shift losses from unauthorised payments onto them.Human oversightMeasures that let people understand, monitor and, when needed, override or stop a high-risk AI system.Client-Initiated Backchannel Authentication (CIBA)An OpenID flow where an app requests a user's approval, and the user approves on a separate device.