Mrs Philipp was deceived by criminals into instructing Barclays to transfer large sums to accounts controlled by fraudsters. She argued that the bank should have delayed or stopped the payments because it had reasonable grounds to suspect fraud.
Selected cases
UK Supreme Court · [2023] UKSC 25
Philipp v Barclays Bank UK PLC
The UK Supreme Court considered a bank's duty when a customer authorised payments after being deceived by fraudsters.
UK Supreme Court12 July 2023
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Quick read
- The case matters for payment controls and fraud prevention.
- The UK Supreme Court considered a bank's duty when a customer authorised payments after being deceived by fraudsters.
Use this to check
- Use callback checks for new or changed payment details
- Separate payment setup from payment approval
- Train staff on authorised push payment fraud scenarios
Decision snapshot
What happened
- Mrs Philipp was deceived by criminals into instructing Barclays to transfer large sums to accounts controlled by fraudsters.
- She argued that the bank should have delayed or stopped the payments because it had reasonable grounds to suspect fraud.
What the court had to decide
- The issue was whether the bank's duty of reasonable care required it to refrain from executing a customer's valid payment instructions in an authorised push payment fraud scenario.
What the court decided
- The Supreme Court allowed Barclays' appeal on that duty argument.
- The bank's basic duty was to execute a valid payment instruction, although a separate claim about trying to recover funds was permitted to continue.
Practical impact
Practical read
- The case matters for payment controls and fraud prevention.
- Businesses should not assume the bank will catch authorised fraud payments.
- Internal approval controls, callback checks and payment-change verification are still essential.
Useful next steps
- Use callback checks for new or changed payment details
- Separate payment setup from payment approval
- Train staff on authorised push payment fraud scenarios
How businesses should read it
The case matters for payment controls and fraud prevention. Businesses should not assume the bank will catch authorised fraud payments. Internal approval controls, callback checks and payment-change verification are still essential.
Key takeaways
- Use callback checks for new or changed payment details
- Separate payment setup from payment approval
- Train staff on authorised push payment fraud scenarios