Authorised push payment ("APP") fraud
Authorised push payment ("APP") fraud is a type of scam where a victim is tricked into knowingly authorising a payment from their bank account to a fraudster’s account.
Unlike unauthorised fraud (where a criminal gains access without the victim's consent), in APP fraud the victim believes they are paying a legitimate person or organisation. For example:
- Paying a scammer posing as a solicitor during a house purchase.
- Sending money to someone impersonating a bank, a government official, or even a friend or relative.
- Paying for goods or services that never arrive.
When the payment is authorised by the victim, it can be harder to recover the money, though new legislation has made it easier for victims to be reimbursed via their bank or the receiving bank.
APP fraud often relies on social engineering tactics, such as urgency, fear or trust to manipulate the victim into acting quickly without verifying the transaction.
Examples of APP fraud:
A cloned firm is a type of investment or other financial scam where criminals impersonate an authorised financial services company. Typically, the fraudster will copy key details such as the name, address, registration number and brand details (such as copying logos, websites).
Potential victims are then contacted by the criminals or are tricked into visiting the fake website and persuaded to hand over their money believing that they are dealing with a genuine, regulated company.
Beware
- The branding of any website may look genuine but the contact details such as phone numbers, email or web addresses are fake.
- Check the FCA website for a link to the company that you are investing with and contact them through details found there. https://register.fca.org.uk. Avoid firms that give you different information.
- Use the FCA warning list, which is a list of unauthorised firms and scams. This includes known clones.
- Always contact the firm or person that you are dealing with via an independently verified telephone number or email. You can find this often via their official website and /or via the FCA register.
- Be wary of unsolicited contact. In particular avoid cold calls, unexpected emails, approaches via social media or messaging services such as Telegram or WhatsApp offering investments or other financial services.
- Criminals may pressure you into acting early suggesting that the offer or investment will not be available for long. A genuine company will never pressurise you into making an investment.
- Look out for subtle differences in website addresses and names (e.g changing from .co.uk to .net or something else or use of additional letters in an address such as financialservicescompany.com being changed to financial-services-company.com)
- Do not rely on the caller ID on your phone to prove the caller is genuinely ringing you from that number, it can easily be spoofed.
This common scam is when a criminal claims to be from a trusted official source, such as a bank, the Police or other law enforcement agencies. They attempt to coerce the victim into providing them with money under false pretences. In some instances, victims have been told that they are talking with the police and that their bank is under investigation for money laundering. The victim is asked to “go undercover ” and withdraw so that it can be tested to ensure it is not fake. This is of course a scam.
Fraudsters may also impersonate your friends or family, this is particularly prevalent on social media where profile pictures and personal information is cloned to make the impersonation seem real. This is often followed by a request to transfer money to them or an attempt to manipulate you into providing personal and financial information which they will later use.
Beware:
- Calls out of the blue from someone claiming to be from an official source.
- Requests to move money. The police nor any other legitimate person will ever ask you to withdraw or transfer money to a “safe account”.
- A request to hand over cash so it can be “examined”.
- Messages on social media from people that you think you know asking for money, personal or financial information.
- Email from addresses that differ from the genuine sender, even if only slightly.
- Calls, texts, emails or direct message asking for urgent information or help. This may even appear to be from a family member or friend and could be for emotive reasons such as requiring funds for medical attention.
- Requests that put you under pressure to act immediately e.g. "Your money is at risk”. If a bank believes there is a significant risk of fraud then it will hold the payment until they have verified its authenticity.
This happens when you are convinced to move your money into a fictitious fund, illegal Ponzi or pyramid type scheme, or where fake opportunities to invest in something have been created by criminals.
You may be searching online for investment opportunities, see an advert on social media or receive emails and messages with investment opportunities.
Beware:
- Criminals may pressure you into acting early suggesting that the offer or investment will not be available for long. A genuine company will never pressurise you into making an investment.
- Look out for websites that appear to be genuine but the address may look different. Always check the legitimacy of an investment firm through the FCA web site.
- Some sophisticated scams result in documents with official branding being sent to the victim. If in doubt, check the FCA website for a link to the company that you are investing with and contact them through details found there. https://register.fca.org.uk
- Extra caution. If the investment company sends you early payments to show “returns” on your investment in an attempt to convince you to invest larger sums of money.
- Take care if you see celebrities endorsing investments or stories about people who have allegedly received large returns. If something seems too good to be true, it always is.
- Anyone asking you to download screen-sharing software or support software so they can make investments on your behalf. This allows a criminal to move money away.
- High risk opportunities such as cryptocurrency, gold and precious metals, property, carbon, or high-end goods such as wine or art.
This is where fraudsters send false invoices, usually impersonating genuine suppliers but instead of asking you to pay to their normal account, a new bank account has been provided. The new account is an account controlled by the fraudster. Often the scam happens as criminals are able to have gained access to the supplier’s email. Once they have got access a false invoice is created with new bank details and sent from this genuine email address.
In other instances the criminal will “spoof” an email address, meaning that they will make it appear to have come from the genuine supplier, often that appears to be the same These scams often involve a criminal intercepting emails, gaining access to your supplier’s email account or pretending to be from them (also known as spoofing).
Beware:
- If your supplier asks you to pay to a new bank account.
- Multiple or unexpected invoices are received.
- A request that appears to be from a trusted source asking you to pay an invoice urgently.
This is when a criminal places something for sale that doesn’t actually exist. It’s most prevalent on online marketplace sites found on social media or in adverts that appear too good to be true or “limited time only” offers.
Beware:
- Look out for links that take you to a different platform or website to make a payment.
- Have you seen the same images advertising the goods on multiple sites?
- Do you feel pressured into buying now?
- Have you been asked to pay for a courier service or insurance when buying and selling online?
- What does the website look like? Are there spelling mistakes or grammatical errors on the site?
- Are there any reviews? Do those reviews look genuine?
This cruel scam happens when criminals use a fake dating profile or contact you via social media to start a relationship with you. Once they have gained your trust they start creating reasons to ask you for money. It becomes difficult for the victim to say no because they are invested in the “relationship” and don’t want to let the other person down.
Beware:
- A person who declares strong feelings for you after only a very short time.
- If the person you are talking to wants to move to a different platform (i.e. off a dating site onto a chat app such as Telegram or WhatsApp) quickly.
- If you chat via text or phone but they’re never available for a video call.
- They have emergencies that require funds, e.g. medical bills to pay.
- They try to coerce you to pay for them to visit you. The visit will not happen.
- Suggest that you invest in something often after endorsing it themselves.
- Ask you to take a loan out in your name. Ask you to be untruthful to your bank, friends or family.