What is Authorised Push Payment (APP) Fraud?
Authorised Push Payment (APP) fraud occurs when a person or business is tricked into sending money to a fraudster's account. The victim authorises the payment, believing they are sending money to a legitimate recipient, but in reality, the funds go to a scammer. Unlike traditional fraud, where transactions may be unauthorised or occur without the account holder’s knowledge, APP fraud involves the victim being deceived into willingly initiating the transfer.
How Does APP Fraud Work?
APP fraud typically involves tactics to manipulate the victim into transferring money. Common methods include:
- Impersonation Scams: Fraudsters pose as trusted individuals or entities, such as banks, government officials, or company executives, to convince victims that urgent payments are needed.
- Investment Scams: Victims are lured by promises of high returns on investments and persuaded to transfer money to fraudulent investment schemes.
- Purchase Scams: Fraudsters advertise non-existent goods or services online, enticing victims to pay upfront, only for the promised items never to be delivered.
How to Protect Yourself from APP Fraud
Despite the sophisticated tactics used by fraudsters, there are l measures you can take to protect yourself from APP fraud:
- Verify the Recipient: Before making any payment, especially large ones, verify the recipient’s details through an independent source. Contact the person or business directly using a trusted phone number or email address.
- Be Sceptical of Urgency: Fraudsters often create a sense of urgency to rush victims into making quick decisions. Take your time to verify the legitimacy of the request.
- Use Secure Communication Channels: Avoid sharing sensitive information or conducting financial transactions over unsecured or unverified communication channels.
- Keep up To Date: Awareness is key. The latest scams are highlighted in the press and on social media keep yourself up to date, newscams evolve quickly.
- Monitor Your Accounts: Regularly review your bank statements and transaction history to detect any unauthorised or suspicious activity promptly.
- Report Suspicious Activity: If you suspect that you have been targeted by APP fraud, report it immediately to your bank/building society and the relevant authorities.
In Summary
Authorised Push Payment fraud is a growing threat in our digital age, exploiting the trust and urgency often associated with financial transactions. By understanding how APP fraud works and taking proactive steps to safeguard your finances, you can significantly reduce your risk of falling victim to these scams. Always remain vigilant, question unexpected payment requests, and prioritise secure communication practices to protect yourself and your assets.
