Authorised Push Payment (APP)

Understanding the Dangers and Taking Action

What is APP fraud?

Authorised push payment fraud (APP) is a type of scam where fraudsters trick individuals into transferring money to them. Unlike other types of fraud, APP fraud involves the victim willingly making the payment, often under the pretence of a legitimate payment or transaction. In this article, we’ll explore APP fraud, how it works, and what you can do to protect yourself.

APP fraud typically involves the use of social engineering tactics, such as posing as a bank or authority figure, to gain the victim’s trust. The fraudster will often use sophisticated techniques to make the payment request seem genuine, such as creating a fake invoice or providing false account details.

Once the victim has transferred the money, the fraudster will often disappear or become difficult to contact. Sometimes, the fraudster may even use the victim’s personal information to commit identity theft or further fraud. Authorised push payment fraud is a growing problem in the UK. According to the latest data from UK Finance, there were over 149,000 cases of APP fraud in 2020, with losses totalling £479 million. The average loss per victim was £3,000.

‘’There are several steps you can take to protect yourself from authorised push payment fraud. First, be wary of any payment requests, especially if they come from someone you don't know or trust. Always verify the identity of the person making the request, and be suspicious of anyone who pressures you to make a payment quickly.’’

There is a clear link between the rise in authorised push payment fraud and the increasing use of online banking. As more and more people turn to online banking to manage their finances, fraudsters have found new ways to exploit vulnerabilities and trick people into transferring money to them.

It’s also important to be cautious of any changes to payment details, such as a different bank account or payment method. If you receive a request to change payment details, always verify the new details with the original sender using a phone number or email address that you know to be genuine.

You should also be cautious of unsolicited phone calls, emails, or texts, especially if they ask for personal or financial information. Never give out personal or financial information to someone you don’t know or trust.

If you do become a victim of authorised push payment fraud, it’s important to report the crime to the police and your bank or payment provider immediately. The sooner you report the scam, the more likely it is that the authorities will be able to recover your funds or prevent the fraudster from targeting others.

APP fraud is a serious issue that can have devastating consequences for its victims. By understanding how it works and taking steps to protect yourself, you can avoid falling victim to these scams. Remember to be cautious of any requests for payment, changes to payment details, or unsolicited phone calls, emails, or text messages. If you do become a victim, don’t hesitate to report the crime to the police and your bank or payment provider.

These scams are particularly dangerous as they exploit trust and urgency. The victim believes they are making a legitimate payment, which makes it harder to identify the fraud until after the transfer. Recovery of funds can be challenging, as the victims are the ones who authorise the transactions.

Common examples of APP fraud include:

Invoice Fraud: Fraudsters impersonate a legitimate company, requesting payment for services or goods. The fraudster might claim that the company’s banking details have changed, prompting the victim to send money to the wrong account.
CEO Fraud: Employees are tricked into transferring money by someone pretending to be a senior company executive. This often involves urgent requests for transfers, exploiting the employee’s trust and authority of the supposed sender.
Romance Scams: Fraudsters establish a romantic relationship online and request urgent financial help, often for a fabricated emergency.
Rental Fraud: Prospective tenants are fooled into transferring a deposit for a rental property that the fraudster doesn’t own, or that doesn’t exist.
Impersonation Scams: Fraudsters impersonate trusted entities like banks or the police, convincing victims to transfer money for “safekeeping” or as part of an “investigation.”

Protect yourself from the most common crime in the UK- fraud.

With billions in damages yearly, falling victim can devastate your finances and mental well-being. Take control of your financial security today.

Authorised Push Payment (APP)

Understanding the Dangers and Taking Action

What is APP fraud?

Protect yourself from the most common crime in the UK- fraud.

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