What is an authorised push payment scam?

What is authorised push payment fraud? And what steps can you take to protect yourself from scammers? In this guide, we explore what an authorised push payment (APP) scam is, how they work, and the red flags to look out for. We also cover what to do if you think you’ve been targeted by a push payment scam, and explain the latest APP reimbursement rules.

In this guide: 

• What is APP fraud? 
• How to protect yourself from authorised push payment scams
• What to do if you think you’ve been targeted
• APP scams: Key takeaways

What is APP fraud?

Authorised push payment fraud, or APP fraud, is becoming much more common in the UK. It involves a fraudster scamming a victim into making a bank transfer, typically involving a large amount of money.

The scammer may pose as someone from your bank, for instance, claiming that you’ve been a victim of fraud and need to move some funds. There’s typically a demand to act urgently, designed to trick you into proceeding without thought.

APP scams differ from other types of fraud in that the victim is deceived into authorising the payment themselves, rather than the money being taken without their knowledge. APP scams can be highly convincing, often leaving victims feeling stressed, confused, and unsure of their next steps.

What are some examples of authorised push payment scams?

APP scams can take many forms, with some of the most common including:

• Business email fraud: When an employee receives an email from a fake manager or CEO, asking them to send funds for an urgent matter.
• Impersonation scams: A fraudster pretends to be a family member or friend, usually fabricating an emotional story to encourage a bank transfer.
• Purchase scams: This happens when you’re tricked into making a payment through direct transfer, but you never receive the goods as promised.
• Investment scams: Fraudsters promise returns on fake investments, asking for upfront payments.
• Invoice fraud: Fake invoices are sent to businesses, impersonating genuine suppliers or contractors.
• Lottery and inheritance scams: You’re tricked into thinking you’ve won the lottery or received an inheritance, but are told you’ll need to pay fees and taxes.
• Romance scams: Fraudsters build trust through dating apps or social media before asking for financial help.

How to protect yourself from authorised push payment scams

With APP scams becoming more and more convincing, what can you do to spot red flags and keep yourself safe?

First, think carefully before sharing personal details or money, and always take a moment to pause and reflect. If you’re feeling unsure or worried, independent organisations such as Citizens Advice are on hand to talk through concerns and help you decide how to proceed.

Be cautious if you’re asked to pay for goods or services through bank transfer too – many fraudsters prefer this method as it can be harder to recover the money.

Finally, avoid automatically trusting emails, phone calls, and text messages that ask you to change your details or make a payment. Instead, contact the person or company directly, using information from their official website, to confirm the request.

What to do if you think you’ve been targeted by an APP scam

Even the most cautious people can fall victim to scams, so if you think you’ve been targeted, here’s what to do:

1. Immediately stop contact with the scammer then contact your bank as soon as possible
2. Report the scam to Action Fraud, the UK’s national fraud reporting service
3. Gather all the evidence you can, including communications through emails, texts, and call logs
4. Ask your bank about next steps including reimbursement

APP scam reimbursement rules

New rules for APP scams were introduced in 2024. These apply to payments sent between UK accounts using Faster Payments or CHAPS (a type of same-day bank transfer, typically used for larger payments). Under these new rules, banks must reimburse eligible victims up to £85,000. Additionally:

• You can expect your claim to be handled within 5 business days
• The cost of reimbursement is split equally between your bank and the scammer’s bank
• A £100 excess may be charged, but not for vulnerable customers
• You’ll need to report your scam to the bank within 13 months of the payment
• You’ll need to provide as much information as possible and consent to police reporting 
  

APP scams: Key takeaways

Hopefully the above insights on APP scams have been helpful, and you’re now feeling more confident in spotting potential warning signs.

The most important thing to remember is to pause and think before sending money to anyone. It’s always better to be overly cautious, and a genuine organisation will be happy to verify.

Double check payment details too, and contact organisations using official websites and phone numbers. Also, don’t be afraid to ask your bank for advice. A few extra checks can help keep your money safe.

Explore more resources

Looking for more helpful insights? You’ll find plenty of guidance over on the Moneyboat blog. There you can read our cybersecurity tips for staying safe online, including information on phishing scams, AI scams and more. You’ll also find advice on seasonal Black Friday scams, with tips on what to look out for when shopping during busy periods.

Or, if you’re looking for support with managing debt or improving your overall financial wellbeing, contact a free and independent support organisation.