Authorised Push Payment (APP) fraud is a massive issue in the UK. In the first half of 2024, UK Finance reported that £214 million was lost to APP scams. At CEL Solicitors we see first-hand the damage and distress caused by these scammers. This article explains APP fraud, common types of scams, and how you can protect yourself.
What is Authorised Push Payment Fraud?
APP fraud, also known as a push payment app scam, occurs when scammers trick you into authorising a payment to their account. Unlike unauthorised fraud, where money is taken without consent, APP fraud involves you knowingly making the payment under false pretences.
Fraudsters often pose as trusted organisations like banks, HMRC, or utility companies to gain your trust and create a sense of urgency, pressuring you to act swiftly. Victims of APP fraud may struggle to get their money back, but banks are expected to respond within 35 business days to fraud complaints. If they refuse to reimburse you, you can escalate your case to the Financial Ombudsman Service and seek help through a recovery company like CEL Solicitors.
Common Types of APP Fraud
Understanding the various forms of APP fraud can help you recognise and avoid them.
Invoice Scams
In invoice scams, fraudsters intercept legitimate invoices or create fake ones, and convince people/businesses to pay into accounts disguised as legitimate payees. These scams often target property transactions and business payments processed via faster payments or CHAPS.
Romance Scams
Romance scams involve scammers building fake relationships online to gain your trust and affection. Once a bond is formed, they fabricate emergencies or financial needs, persuading you to send them money. Many of these scams start on social media or on dating apps, where fraudsters create realistic-looking profiles.
Impersonation Scams
In impersonation scams, fraudsters pose as officials from services and companies like banks, HMRC, or the police. These scams often start via phone, email, or text, claiming urgent issues like tax problems or security breaches. They instruct their victims to transfer money for safety or provide personal information. They can later use this information to design even more realistic scams and extort more money.
Advance Fee Scams
An advance-fee scam tricks victims into paying upfront fees for goods, services, or prizes that are never delivered. These scams often involve fake loan offers, prizes, or job opportunities that require an upfront payment to access.
How Can I Protect Myself?
Staying informed and cautious is key to safeguarding against APP fraud. Here are some steps to help protect yourself:
Verify Payment Requests
Always double-check any payment requests. Contact the person or company directly using known contact details before transferring money. If in doubt, move your money to a different account that you already have access to – like an account with a different bank – until you can confirm legitimacy. Never trust somebody who asks you to transfer money to a new “safe account” or who asks for access to your account.
Be Wary of Urgency Tactics
Scammers often claim you must act quickly. They claim the opportunity is ending or your account is at risk. They create a sense of urgency to pressure you into quick decisions.
Take your time to assess the situation, even if the message or call seems urgent. Banks will never rush you to make a quick transfer. Taking a few more minutes can be vital to protecting your money.
Avoid Clicking on Suspicious Links
Do not click on links in emails or texts unless you are absolutely sure it is legitimate. Dodgy links may lead to phishing websites designed to steal your personal and financial information. For further guidance, visit Get Safe Online and the National Cyber Security Centre (NCSC).
Use Two-Factor Authentication (2FA)
2FA is a powerful security tool which can protect your accounts behind a random, constantly changing code that only you have access to. This may be as part of an authentication app, or it could be a code sent to your phone number or email.
You should enable 2FA on all of your financial accounts. This is one of the best ways to protect your finances and makes it incredibly difficult for scammers to access your accounts.
Monitor Your Financial Accounts Regularly
Regularly check your bank and credit card statements for any unauthorised transactions. Under banking regulations, victims of APP fraud have 13 months to report fraudulent transactions to their bank.
Report Suspicious Communications
If you receive a suspicious message or call, report it to your bank, Action Fraud, or the organisation being impersonated. Reporting helps protect others from falling victim. You can also seek further advice from Citizens Advice.
For more tips on staying safe, read our article on Fraud Trends 2024: How to Stay Safe.
Choose CEL Solicitors to Recover Your Money
If you’ve been a victim of APP fraud, CEL Solicitors can help you recover your lost funds. We specialise in assisting fraud victims and offer a no-win, no-fee service, so you won’t pay unless we succeed in getting your money back. Our experienced team has helped many clients recover their money and can guide you through the process with expert support.
Banks are now under increasing scrutiny from the Payment Systems Regulator (PSR). If a bank refuses to refund you, legal action may be an option, but it could become a civil dispute requiring legal assistance.
Don’t face this challenge alone—contact CEL Solicitors today for advice and assistance. Even if your bank has refused a refund, we may be able to help. Our experienced team has helped many clients reclaim their money, with over £100 million recovered for fraud victims to date. We are here to guide you through the process with expert support.
