Key Takeaways
- Authorised push payment (APP) scams occur when an attacker poses as a legitimate entity to trick their victim into sending them funds
- You can protect yourself from APP scams by carefully examining messages and offers
- If you fall victim to an APP scam, contact your bank or financial service provider quickly, as they may cancel or reverse the payment
What Is an Authorised Push Payment Scam?
Authorised push payment (APP) scams occur when an attacker poses as a legitimate entity in order to trick victims into sending funds to their accounts.
APP scammers may pose as companies, banks, government agencies, or individuals to gain the trust of their victims. Scammers often use internet ads, social media, dating apps, and other online tactics to research and contact their targets.
The term “authorised” means that an individual willingly agrees to send money during an APP scam, albeit under false pretences. This factor distinguishes APP scams from other types of fraud where the individual does not consent to any transaction.
Regardless, responsibility for fraud doesn’t always fall on the end user. In addition to taking precautions against APP scams, you should know your rights if you are victimised.
Types of Authorised Push Payment Scams
There are numerous types of APP scams, including:
Impersonation scams: An attacker may pose as a company, bank, government agency, or individual to gain a victim’s trust. Then, the attacker convinces the victim to transfer funds to their account by falsely presenting the transaction as a normal part of business.
Purchase scams: Scammers may persuade victims to buy nonexistent items and services.
Romance scams: An attacker may start a relationship on a dating site, usually under a false identity. After building trust, the attacker asks their target to send them money.
Investment scams: Some APP scammers persuade a victim to make an investment with the promise of returns that do not exist or are not guaranteed.
Loan fee scams: Some attackers offer loans and ask for an advance fee but never provide the loan. Attackers may target individuals who have sought loans elsewhere.
PSR’s Latest APP Scams Report
In August 2024, the UK’s Payment Systems Regulator (PSR) published a report covering APP scams over the past year, revealing new trends.
The report found that victims in the UK lost almost £341 million across 252,626 APP scam cases during 2023. Those numbers are down 12% and up 12% from 2022, respectively, meaning that APP scams stole less money but accounted for a greater number of cases.
The PSR also found that scam reimbursements rose. Banks and financial services reimbursed 67% of losses under a voluntary reimbursement framework in 2023, up from 61% in 2022.
The PSR is introducing a new reimbursement requirement in October 2024 alongside other measures. This will help ensure that APP scam victims in the UK regain lost funds.
How to Prevent APP Scams
The best way to protect yourself from APP scams is to watch out for red flags. Beware of:
Unusual messages: If you’re unsure whether a message is real, contact the company, bank, or government body through a trusted contact method, such as the phone number on your bills. Ask the bank or company to confirm that they have actually sent the relevant offers.
“Too good to be true” offers: Exceptional offers can be tempting, and although companies offer good deals, you should make sure that such offers are legitimate.
Financial messaging: The FCA has banned financial cold calling since August 2023, meaning that unexpected phone calls from banks and other financial services may be scams. Note that other types of cold calling are still permitted.
Pressure to act: Attackers usually pressure victims to send funds quickly. Even if a message suggests you have done something wrong, consider the situation patiently.
Obscure payment methods: APP scammers may rely on unusual payment channels, though you should also be aware of demands for credit cards and other standard payments.
Requests for personal information: APP scammers often try to obtain personal information. Legitimate companies generally do not request your personal information over text and email. Instead, they have secure online forms and trusted means of verifying your identity.
Reporting APP Scams in the UK
If you’re the victim of an APP scam, report the incident to your bank or service provider as soon as possible. The service may be able to block or reverse the transaction or trace the funds.
You can also report the scam to the police. In the UK, you can contact Action Fraud by phone at 0300 123 2040 or via the Action Fraud website.
Outside of the UK, details vary. Contact your bank or financial service provider to learn about their policies, or contact your local police or government for general information.
If you’re a Payset user, you should report any suspected instance of fraud immediately by following our guidelines.
