Authorised Push Payment fraud (APP) in the UK

What are push payments?

Before we go into details, it’s worth distinguishing between “push” and “pull” payments. Push payments are transactions where the payer initiates the payment and "pushes" the funds to the payee’s account. Whoever is making the payment has full control over when the money is sent, the amount that is sent, who the money is sent to. Typically, the payer has to authorise the payment, by entering a PIN or password or through an app. Examples of push payments are bank transfers and bill payments. Push payments contrast with pull payments like payee (e.g. a business) initiates the transaction and “pulls” the money from the payer’s account. A good example of a “pull” is a Direct Debit.

What is authorised push payment fraud?

Authorised Push Payment (APP) fraud is when criminals trick someone into authorising a payment into a fraudster’s account. The fraudster then takes the money and disappears - and  it can be impossible to get the money back. Unlike other types of fraud where accounts are hacked or card details are stolen, APP scams happen when the victim is tricked into thinking they’re paying a legitimate person or business and willingly makes the payment. Hence them being called “authorised” push payments - the victim agrees to make the payment, not realising it’s a scam. Every year thousands of people and businesses fall for APP scams. In fact, the latest figures show £459.7 million was lost to APP scams in the UK in 2023. 

Common types of APP scams

Sadly, there are many types of APP scams. All of them involve a level of deception; someone pretending to be someone or something they aren’t. Most APP scams will also play on a sense of urgency - they’ll tell you that you have to act straight away and they’ll create a sense of panic, so you don’t stop and think things through. 

In the next section we’ll take a look at some of the more common Authorised Push Payment scams. 

Impersonation scams

One of the most common forms of Authorised Push Payment fraud is impersonation scam.

In banking scams, the scammer contacts you (normally by phone), claiming there’s suspicious activity on your account and that you have to urgently transfer money to a “safe” account, which actually belongs to the scammer. The scammers are often very convincing and may already have information about you that convinces you the scammer is genuine.

Similarly, scammers will pretend to be calling from a government agency like HMRC, saying that you owe money and that the bill needs to be settled immediately. 

Another form of impersonation scam is the CEO scam, where a junior employee at a company is contacted (normally by email) by a scammer pretending to be the CEO or a senior manager, asking for urgent payment of a bill. The scammer will put pressure on the junior employee to pay up quickly and may ask them to bypass the business’s usual processes. 

Purchase scams

Purchase scams are when fraudsters advertise fake items (often high-demand or hard-to-find products) on online marketplaces, auction sites, or on social media. You make the payment, but the goods are never delivered and the scammer quickly disappears with your money. This happens most often with highly-sought after items like tickets and vehicles. Remember: if the offer looks too good to be true, it probably is!

Romance scams

As the name suggests, romance scams involve pulling on your heartstrings. The scammer builds an online relationship with you, often on a dating platform or social media or dating platforms, gaining your trust. Eventually, the fraudster asks for money, usually claiming they need it for an emergency, travel, or personal hardship - they then disappear with the money. As you can imagine, romance fraud can be one of the most emotionally devastating of the scams. Not only do they steal your money, they can ruin your sense of trust in other people.  

Investment scams

With investment scams, the scammer convinces you to invest in a high-return opportunity (maybe a “once in a lifetime” chance), often showing you fake or exaggerated returns. You transfer your money into what you think is a legitimate investment account, but it’s actually the scammer’s account. These days investment scams often focus on property or cryptocurrency.

Keep an eye out for scams

The impact of APP fraud

As mentioned above, the financial impact of APP fraud can be huge, and has a big effect on the UK economy. Harder to measure is the emotional impact it has - it can be absolutely devastating for the victims, who have been fooled into handing over their money. It can be difficult for them to regain trust in the banking system. Many victims feel shame and embarrassment about falling for APP frauds, and may not want to report it or talk about their experience. 

How to avoid APP fraud

Keep your account secure
As an ANNA customer, the most important thing you can do is to keep your username, password, security questions, and one-time passcodes confidential. Don’t share them with anyone, and don’t give them out to anyone who asks for them. Do this and you’re far more likely to protect yourself from fraud. 

Be suspicious of unexpected payment requests 
If you get a sudden request for a payment or are told you have to immediately move your money, stop and think. Take time to make sure the request is genuine. Scammers often create a sense of urgency to pressure you into acting quickly.

The scammers may be convincing, and they may be contacting you from a phone number or email address that looks genuine. Don’t assume that because the caller ID says ANNA, it’s really ANNA on the phone!

Check payment requests through channels you can trust
If someone claims to be from a trusted organisation (your bank, a government agency, the police, or a business), don’t rely on the contact details they provide - you shouldn’t call them back on the number they give you or reply to the email address they have mailed you on. Instead you should look up the official contact information from the organisation’s website (or previous, trusted channels you’ve used before).

Double check payment details
When you’re asked to make a payment, double check that the payment details are correct. The majority of accounts (including ANNA) use confirmation of payee systems to make sure that names and bank details are genuine. ANNA will warn you if someone’s details don’t match, and be warned - if you then go ahead and make the payment and it turns out to be a scam, you may not be eligible for compensation.

If you’re making large payments, try making a small test payment first to make sure it gets to the right recipient. 

Making a large payment?

If you’re contacted by a supplier saying their payment details have changed, use a trusted channel to make sure it’s a genuine request. If you can, speak to them face to face or on the phone.

Signs of APP fraud

So, what are the signs of APP fraud that you should look out for?

Unsolicited contact 

You get unexpected phone calls, emails, or messages asking for payment or personal information. Fraudsters may pretend to be your bank, utility provider, the police or HMRC.

Pressure to act quickly

Scammers will often insist that there's an emergency (e.g. compromised bank account) that requires immediate payment. You won’t be given time to think things through.

Unusual payment methods

You’re asked to transfer money via unusual or unfamiliar methods, like cryptocurrency, gift cards, or through a new bank account. 

Inconsistent communication

You get messages from an organisation you’d normally trust (e.g. a bank, employer, government agency) that doesn't match their typical style, tone, or grammar. Maybe it says “dear customer” where normally it would have your name. Keep an eye out for typos, but be aware that scammers are increasingly sophisticated and use email addresses, phone numbers and websites that look almost identical to legitimate ones.

Offers that are too good to be true

You’re offered an investment or prize that seems too good to be true, or with returns that are unrealistically high. 

Impersonation

You get a message from someone you supposedly know (a friend or business) asking for help - maybe they’ve lost their phone or urgently need money.

What protections are in place for consumers?

From 7 October 2024 the Payment Systems Regulator (PSR) brought in new UK-wide rules that change how Authorised Push Payment (APP) scams are handled by payment service providers (including ANNA).

What are the new APP rules?

What are the new APP rules?

What should I do if I’ve been scammed?

If you think you’ve been scammed immediately contact ANNA (or if you’re not an ANNA customer, the bank or financial institution you made the payment from) to let them know that you think you’ve been scammed.

Reporting APP fraud

Report the scam to Action Fraud on 03001232040 or at www.actionfraud.police.uk, or report it to the police and get a reference number. If you’re in Scotland, report it to Police Scotland by calling 101. 

Report scams to Action Fraud

Be safe, be sensible, protect yourself

As we’ve seen in this blog post, APP fraud is a serious issue that can affect all of us. Scams are widespread and constantly evolving, but if you’re sensible, sceptical and keep your account details secure, you’re far less likely to becoming a victim.