Former BBC News broadcaster Moira Stuart recently shared how she narrowly avoided becoming a victim of authorised push payment (APP) fraud. With more than 230,000 people falling victim to APP fraud each year, Stuart’s experience serves as a cautionary tale for everyone.
Understanding APP Scams
APP fraud is when fraudsters trick individuals into transferring money to them under false pretences. They often impersonate banks, the police, or even trusted individuals like friends or family members. Common schemes include fraudsters convincing victims to send money to a “safe account” or tricking them into paying for goods that never materialise. Romance scams are another prevalent form of APP fraud, where victims believe they are in a relationship and willingly transfer money.
The scam is typically carried out online via social media, email, phone calls, texts, or WhatsApp messages. Fraudsters use various tactics to gather personal information and convince victims to make payments. Their ultimate goal is to get victims to voluntarily transfer money, making it much harder for them to get their money back as they are deemed responsible.
Moira Stuart’s Brush with APP Fraud
Classic FM presenter Moira Stuart recently revealed how she almost lost thousands of pounds in an attempted APP scam. Despite her background in broadcasting and having reported on fraud before, Stuart came dangerously close to being scammed. She only escaped financial loss thanks to the quick thinking of a bank cashier.
Stuart received a phone call at 9 a.m., with the caller claiming to be from her bank. The fraudster told her that someone at her local branch was working with insiders to steal money from her account. The fraudster kept her on the phone the entire time, instructing her on what to say to the bank staff to avoid suspicion. Stuart followed their instructions, unaware that she was being deceived.
When she arrived at the bank, the cashier noticed something was wrong. After taking her aside, he said, “This doesn’t sound right,” and connected her with the bank’s anti-fraud team. They quickly confirmed that she was being scammed. Stuart later described her experience, saying, “I was devastated, embarrassed, and angry with myself.”
Alarming Statistics
APP fraud continues to be a major problem across the UK. According to UK Finance, the number of APP cases increased by 12% last year, with over 232,000 reported incidents. However, APP fraud losses dropped by 5% to £460 million. While these figures suggest some improvement, the growing number of cases shows there’s still a long way to go.
Despite some progress, the amount lost to romance scams reached its highest level last year, increasing by 17% to £36.5 million. Similarly, purchase scams rose by 34%, with total losses hitting £85.9 million. Even when fraudsters fail to convince victims to transfer money, they often use stolen personal information and card details to take over accounts or apply for new credit-based products such as credit cards or loans.
Banks’ Role in Stopping Fraud
While many victims of unauthorised fraud are legally protected, the financial losses from APP scams are harder to recover. Last year, £287 million of APP losses were returned to victims, covering 62% of total losses. This represents an improvement from the 59% reimbursed in 2022. However, the remaining victims are often left with significant financial losses.
Stuart’s story also demonstrates the importance of bank staff in fraud prevention. The cashier’s vigilance prevented her from losing thousands of pounds. Banks are investing more in training staff to spot suspicious transactions and question customers when something seems off. However, the responsibility doesn’t rest solely on bank employees—customers must remain alert and informed about the latest fraud tactics if they are to protect their finances.
UK Finance’s ‘Take Five to Stop Fraud’ Campaign
UK Finance has launched the ‘Take Five to Stop Fraud’ campaign to raise fraud awareness and help individuals avoid falling victim to scams. The campaign follows three essential steps:
1. Stop – Take a moment before transferring money or sharing personal information. Rushing can lead to mistakes.
2. Challenge — Question whether the request is genuine. If something seems off, it’s okay to reject or ignore it. Fraudsters will often try to pressure or panic you.
3. Protect — If you think you’ve been scammed, contact your bank immediately and report the fraud to Action Fraud.
Staying Informed and Alert
While the number of fraud cases involving fraudsters impersonating banks or police has dropped, other forms of fraud, such as romance and purchase scams, are rising. This shift emphasises the importance of staying informed about the different tactics fraudsters use.
Fraud prevention requires vigilance from both individuals and financial institutions. Customers must take the time to verify any requests for payments or personal information, especially when they come from unfamiliar sources. Simple steps like questioning unexpected requests and contacting your bank directly can make a significant difference.
Fraud Awareness is Key
Moira Stuart’s close call with APP fraud serves as a reminder that anyone can become a victim of fraud, no matter how informed they are. Fraudsters are becoming more sophisticated, making it essential to stay informed and alert. By raising fraud awareness and following fraud prevention measures like those in the ‘Take Five to Stop Fraud’ campaign, you can protect yourself and others from falling victim to these scams.
Stuart’s experience also highlights the emotional impact that fraud can have. Many victims of APP fraud, like Stuart, feel ashamed or embarrassed, even though the fraudsters are the ones at fault. “It feels like you’ve let yourself down,” Stuart said. This emotional strain often prevents victims from coming forward and reporting fraud, further complicating the fight against scams.
