Authorised Push Payment Fraud
Authorised Push Payment (APP) fraud is a growing concern in the UK's financial landscape. This type of scam occurs when fraudsters deceive victims into willingly transferring money from their bank account to one controlled by the criminal. The scammer often poses as a legitimate entity, such as a bank, solicitor, or trusted service provider, to gain the victim's confidence.
How APP Fraud Works
Fraudsters employ various tactics to manipulate victims:- Impersonation: Posing as bank staff, police, or other trusted figures.
- Invoice fraud: Sending fake invoices or changing payment details on legitimate ones.
- Romance scams: Building relationships online to exploit emotional connections for financial gain.
- Investment fraud: Offering fake investment opportunities with promises of high returns.
The Impact
APP fraud has devastating consequences:- In 2023, £459.7 million was lost to APP scams in the UK.
- Victims suffer not only financial losses but also emotional distress and damaged trust in financial systems.
New Protective Measures
To combat this issue, the Payment Systems Regulator (PSR) is implementing new rules:- From October 7, 2024, payment service providers must reimburse victims of APP fraud within five business days, up to £415,000.
- Exceptions apply only in cases of customer fraud or gross negligence.
- Costs will be split 50/50 between sending and receiving banks to incentivise fraud prevention.
Prevention Tips
To protect yourself:- Verify payment details independently, especially for large transactions.
- Be wary of unsolicited calls, emails, or messages asking for personal or financial information.
- Take time to consider requests for money, resisting pressure to act quickly.
- Use secure payment methods and enable additional security features offered by your bank.