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APP Fraud

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Authorised push payment (APP) fraud happens when someone is tricked into sending money. But what does it have to do with digital identity?

15 February 2022

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Authorised Push Payment Fraud (APP Fraud)

Authorised push payment (APP) fraud is essentially when a person or business is tricked into sending large sums of money directly to the fraudster. 

With the rise of Faster Payments in the UK, it is easier than ever for fraudsters to take money from individuals, as real-time payments can’t be reversed. 

They often obtain personal information about their victims by hacking into email accounts and monitoring any payment dates and details. 

Generally, APP fraud falls under one of two categories. 

Fraudsters pose as someone from your bank, or another trusted organisation, to get you to transfer them money. For example, they may claim you have been a victim of fraud and need to move your money to another account. 

Fraudsters trick the payee into purchasing goods or paying for services by impersonating someone else such as their builder, or as someone they have a personal relationship with. Examples of this include romance scams and the ‘Hello Mum’ scam.  

While the majority of victims are consumers, businesses can also be attacked by fraudsters, with them posing as a supplier instead of as a contractor. 

How to avoid APP fraud 

If you’re asked to direct a payment to a new account or move your savings, beware. Double check with the firm asking for the payment or your bank by calling them as emails are easy to intercept. If you are being rushed to make the payment, be extra cautious as usually legitimate requests won’t hurry you.