The Barletta restaurant in Margate recently fell victim to authorised push payment fraud (APP), resulting in the theft of over £50,000 from two of their business accounts. Unfortunately, the owners were not able to get a refund from their bank, leaving them struggling to keep their business afloat. In this article, we will explore what APP fraud is, how to prevent it, and what to do if you fall victim to it.
What is Authorised Push Payment (APP) Fraud?
APP fraud, also known as bank transfer fraud, is a type of fraud where fraudsters trick you into sending money from your bank account to another account that they control. According to UK Finance, businesses are the second most targeted group after individuals. In 2020, APP fraud losses amounted to a staggering £479 million.
In the case of the Barletta restaurant, the fraudsters stole small amounts of money from one of their business accounts. Anticipating that the owners would contact their bank. Once the owners reported the thefts to the bank, the fraudsters called pretending to be a bank employee offering to help with the situation. Unfortunately, the owners fell for the scam and ended up giving the fraudsters access to their account, resulting in the theft of over £50,000.
Sadly, many victims of fraud, like the owners of Barletta restaurant, are left to deal with the aftermath of such sophisticated phone scams. Moreover, banks are increasingly reluctant to offer refunds in cases of APP fraud. Often citing loopholes in the Financial Services Compensation Scheme (FSCS) that make them exempt from liability.
Preventing APP Fraud
Businesses of all sizes must take steps to prevent APP fraud from happening to them. Below are some tips to help you stay safe:
- Beware of unexpected calls or emails from your bank. Fraudsters often pretend to be from your bank. Don’t assume that a call or email is genuine just because it appears to be legitimate.
- Don’t give out your personal or banking details over the phone or via email. Your bank will never ask you to disclose your password, PIN, or other sensitive information.
- Verify requests for payments or changes to payment details. If you receive a request to make a payment or change payment details, always verify it with the recipient.
- Educate your staff on how to spot and report scams. Your staff should be aware of the warning signs of APP fraud and know how to report suspicious activity.
What to Do If You Fall Victim to APP Fraud
If you fall victim to APP fraud, you must act quickly. Below are the steps you should take:
- Report the fraud to your bank immediately. The sooner you report the fraud, the more chance you have of recovering your money.
- Report the fraud to the police. You can do this by calling Action Fraud on 0300 123 2040 or reporting it online at actionfraud.police.uk.
- Keep all evidence of the fraud. This includes emails, phone logs, and bank statements.
- Be cautious of follow-up scams. Fraudsters may try to contact you again, pretending to be from your bank or the police. Be wary of unexpected calls or emails, and always verify payment requests or payment details changes.
APP fraud is a serious threat to UK businesses, and taking steps to prevent it from happening to you is essential. By educating yourself and your staff on the warning signs of APP fraud and taking action quickly if you fall victim to it, you can protect your business and your hard-earned money.
