What You Should Know About Authorised Push Payment (APP) Scams
Authorised push payment (APP) scams are a risk that everyone who transfers money should be aware of. Here’s how you can protect yourself — and what you should do if you fall victim to fraud.
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.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
- Account holders can send and receive money with other Payset users for free.
- Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS.
- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
How is Payset regulated?
Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).
How do I add money to my account?
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
Types of Multi-Currency Accounts
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