Authorised push payment (APP) fraud is one of the fastest-growing scams of 2025, targeting individuals and businesses alike. In these schemes, fraudsters deceive victims into willingly transferring money by making them believe that the transaction is legitimate. Unlike traditional fraud—where an unauthorised withdrawal is made from an account—APP fraud exploits the victim’s trust, leaving them responsible for the payment. Once the victim complies and transfers the money, the fraudster typically disappears, leaving the victim with
no recourse to recover the funds.
Authorised push payment fraud occurs when a victim, under false pretences, instructs their bank to transfer money to a fraudster’s account. The term “push payment” refers to the fact that the funds are sent (or pushed) from the victim’s account rather than being stolen directly by unauthorised access. Instead, the scam relies on convincing the victim that the payment is either a legitimate transaction or an urgent request that must be honoured immediately.
The scam typically begins with a convincing message. Fraudsters use social engineering techniques to gain the victim’s trust. By impersonating a bank, government agency, or reputable business, they create a sense of legitimacy. This deception may involve:
The increased reliance on online and mobile banking has provided fraudsters with a fertile ground for their scams. As more people manage their finances digitally, vulnerabilities in online systems are continually exploited. The convenience of online banking is a double-edged sword; while it offers quick access to funds, it also makes it easier for fraudsters to initiate convincing scams.
The rapid shift towards digital financial services has reshaped the way transactions occur. With instant payment approvals and real-time transfers, there is little time for individuals to question a seemingly routine request. Fraudsters take advantage of this speed:
Recent data highlights the alarming rise of APP fraud in the UK. According to UK Finance, there were 232,429 reported cases of APP fraud in 2023, with total losses reaching approximately £459.7 million. This means that, on average, each victim lost around £2000. Although these figures date back to 2023, the trend has continued, particularly as more people adopt digital banking services.
Several factors contribute to the increasing prevalence of APP fraud:
APP fraud exists in various forms, each with its own distinctive tactics. Understanding these different types can help you recognise potential scams:
In this scenario, fraudsters impersonate a legitimate company and send an invoice for goods or services. They often claim that the company’s bank account details have changed and request that the payment be made to a new account. Unsuspecting businesses and individuals may transfer funds only to discover later that the invoice was fraudulent.
CEO fraud targets businesses, particularly small and medium-sized enterprises. Fraudsters send urgent emails purportedly from a company’s chief executive or another senior official, instructing employees to transfer funds immediately. The messages often use language that creates a sense of urgency, prompting the recipient to act quickly without suitable
verification.
These scams involve fraudsters building romantic relationships online. Once trust is established, they create a fabricated emergency—often claiming to be stranded abroad or facing a dire financial crisis—and request financial assistance. The victim, emotionally invested, transfers money in hopes of resolving the supposed crisis.
In rental fraud, individuals looking for property are tricked into paying deposits or fees for properties that either do not exist or are not actually available for rent. The fraudster, posing as a landlord or property agent, provides false details and, once payment is made, disappears.
Here, the fraudster impersonates a trusted entity, such as a bank or the police, to convince the victim to transfer money. They might claim that the money is needed for “safekeeping” or as part of an ongoing investigation. These scams prey on the victim’s trust in established institutions.
The impact of APP fraud is not limited to immediate financial loss; it often has long-lasting effects on both the victim’s financial stability and emotional well-being.
When victims lose money through APP fraud, the financial implications can be severe:
Beyond the financial hardship, the emotional aftermath of APP fraud can be devastating:
Prevention is key when it comes to APP fraud. The following proactive measures can help you protect your finances:
Before making any payment, especially if there is a change in payment details, verify the request using a trusted method:
Be vigilant when receiving unsolicited phone calls, emails, or text messages. Fraudsters often use these channels to initiate their scams:
Knowledge is power. Regularly update yourself on the latest scam tactics by following reputable sources:
Enhance your digital security measures to reduce the risk of falling victim to online scams:
Even with the best precautions, APP fraud can still occur. If you suspect that you have been a victim, act swiftly:
Report the Incident:
Contact Action Fraud immediately by calling 0300 123 2040 or visiting www.actionfraud.police.uk. Reporting the scam as soon as possible increases the likelihood of recovering your funds and helps authorities prevent further cases.
Notify Your Bank:
Inform your bank or payment provider without delay. If reported promptly, they can freeze your account, investigate the transaction, and, in some cases, reverse the payment.
Document Everything:
Keep detailed records of all communications, emails, invoices, and any other evidence related to the scam. This documentation will be crucial for any subsequent investigations or legal actions.
Seek Professional Advice:
Consider consulting with a financial counsellor or legal professional who specialises in fraud recovery. They can provide guidance on the best course of action and help you navigate the recovery process.
Monitor Your Credit Report:
You should regularly check your credit report with agencies such as Experian, Equifax, or TransUnion to ensure that no unauthorised accounts or loans have been opened in your name.
Financial institutions and regulatory bodies play a crucial role in combating APP fraud. Over the past few years, significant efforts have been made to enhance the security of online transactions and protect consumers.
Banks are investing heavily in advanced fraud detection systems:
Regulators have also stepped up their efforts to address APP fraud:
As technology continues to evolve, both fraudsters and financial institutions will adapt. Here are some trends to watch:
Authorised push payment fraud remains a significant threat in 2025. With fraudsters employing increasingly sophisticated social engineering tactics, even the most cautious individuals can be at risk. However, by understanding how APP fraud works, recognising the warning signs, and taking proactive steps to secure your finances, you can reduce your vulnerability to these scams.
The numbers are stark. With over 230,000 cases reported in 2023 and average losses of around £2,000 per victim, the financial and emotional impact of APP fraud is profound. Moreover, as digital banking becomes even more widespread, the risks associated with these scams are likely to grow. This makes it imperative for both individuals and businesses to remain vigilant and informed.
Remember to verify any changes to payment details using trusted contact information, be sceptical of unsolicited requests, and monitor your accounts regularly. In addition, educate yourself about the latest scam techniques and take advantage of your bank’s enhanced security measures. If you do fall victim to APP fraud, act immediately by reporting the incident to Action Fraud and your bank. Swift action can make a significant difference in recovering lost funds and preventing further losses.
Ultimately, staying one step ahead of APP fraud is a shared responsibility. By taking proactive measures and keeping abreast of emerging trends, you not only protect yourself but also contribute to a broader effort to combat fraud across the UK. Through enhanced security, improved regulatory oversight, and informed consumer behaviour, we can work together to minimise the devastating effects of authorised push payment fraud.
February 21, 2025
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