What is an Authorised Push (APP) Payment scam?

An Authorised Push Payment scam (APP Scam) is a form of Authorised Push Payment Fraud (APP Fraud) and it’s where a scammer convinces a person or a business to make a payment to a bank account that’s controlled by the scammer.

The victim goes ahead with the payment, believing they’re sending money to someone or somewhere legitimate, but the funds actually go to the scammer.  APP Scams aren’t like traditional fraud, where transactions could be unauthorised and/or occur without the account holder knowing.  APP Scams involve the victim being deceived to the extent they willingly transfer money to a scammer.

These scammers are criminals who use social engineering tactics to deceive people and impersonate others.  These tactics help them groom and manipulate their victims into transferring money or giving out personal and financial details.

Scammers tend to do this by contacting their victims over the phone, by email or on social media,  pretending to be from places like their bank, a solicitor, a contractor, an estate agent or the police. They’ll often make out that what they’re asking needs to be done quickly, making the victim panic before they get time to think it through properly.

It’s not all bad as there are ways you can protect yourself against becoming a victim of an APP Scam.  We’ve popped some more information and some helpful tips below.

How does APP Fraud Work?

APP Fraud usually involves a criminal using tactics to manipulate their victim into transferring money. Common methods are shown below, click on the headings below to find out more about how they work.

This isn’t all the techniques that fraudsters use; they’re constantly developing new and different techniques to scam innocent victims out of their money.  Remember, if you are being pressurised into making a payment by anyone – STOP and contact someone you trust – a friend or family member, the police or your bank or building society before you do anything.

How to Protect Yourself from APP Fraud

They may be clever, and they may use sophisticated tactics but there are things you can do to protect yourself from APP fraud:

Make sure the details you have are right

Before you send any money, especially large amounts, check the bank details you have using an independent source.  Make contact with the person or business directly using a trusted phone number or email address, or one you’ve taken from a trusted website.

Don’t be pressured or rushed

Fraudsters often suggest that what they’re asking their victim to do needs doing urgently, rushing victims into making quick decisions.  Take all the time you need to make sure it’s a genuine request.

Only use secure communication channels

Don’t share sensitive information or conduct financial transactions over unsecured or unverified communication channels such as personal email or instant messaging services.

Keep up to date

Awareness is key.  You can find information on the latest scams in the press and on social media so keep yourself up to date.  New scams evolve quickly.

Monitor your accounts

Regularly review your bank statements and transaction history to make sure there’s nothing there you haven’t unauthorised or anything suspicious.  If you find something, get in touch with your bank or building society as soon as possible.

Report suspicious activity

If you think you’ve been targeted by APP fraud, report it immediately to your bank or building society and the relevant authorities including the police and Action Fraud.

Take Five

To help everyone stay safe from fraud and scams, Take Five to Stop Fraud urges you to follow the following advice:

Take a moment to stop and think before parting with your money or personal information. It could keep you safe. Ask yourself, could it be fake? It’s ok to reject, refuse or ignore any requests. Only criminals will try to rush or panic you. Do your research and be suspicious of any too-good-to-be-true offers or prices. Remember, your bank or the police will never ask you to transfer money to a safe account. If you’re unsure or are suspicious then talk to a trusted friend or family member before making your payment. For more information visit www.takefive-stopfraud.org.uk

Contact your bank/building society immediately if you think you’ve been scammed and report it to Action Fraud at actionfraud.police.uk or on 0300 123 2040.

How will we protect you from APP Fraud?

Here at The Mansfield, we have processes in place to monitor and detect fraud.

• If we feel you’re potentially a victim of any kind of fraud, including APP Scams, we’ll contact you immediately.
• If you’re making payments that appear to be unusual, we’ll ask you further questions to make sure that you’re confident you’re paying a legitimate person or organisation.
• We might ask you to provide additional information before we process your payment, like a copy of an invoice or proof that an account is in your name.

These steps are in place to help protect you and your money.

What to do if you think you’ve been a victim of an APP Scam

If you think you’ve been the victim of a scam which has involved you sending money electronically from your Mansfield Building Society account to an account elsewhere, you need to let us know as soon as possible.

There are three ways you can tell us that you’ve you been a victim of an APP Scam:

1. Complete our Online Claim Form which you can find at mansfieldbs.co.uk\app-fraud-reporting. It’s important that you answer all the questions with as much detail as you can.
2. Contact us by telephone. You can call us on 01623 636350 and we’ll complete the Form with you over the phone.
3. Call in to any of our branches. Our branch colleagues will complete the form with you in person.

APP Fraud – Your right to reimbursement

The Payment Services Regulator (PSR) has recognised the increasing and significant impact that APP scams are having on customers.

From 7 October 2024, there are new rules relating to reimbursing victims of APP fraud. All banks and building societies must have processes in place to ensure that claims of APP Scams are fully investigated and where claim criteria is met, the victim is fully reimbursed for the amount lost in the APP Scam.

Victims of APP Fraud can make a claim to the bank or building society they’ve sent the payment from to be reimbursed for any funds lost as part of an APP Scam. The bank or building society will investigate the circumstances of the scam and will contact the bank or building society that the payment was sent to, to help with the investigation. Customers must ensure they provide any information requested as part of the investigation, failure to provide information could prevent claims for reimbursement being successful.

Following investigation, if a claim is successful, the bank or building society from where the payment was sent from will reimburse the customer with the funds lost up to a maximum of £85000.

The APP Fraud reimbursement rules apply to Faster Payments and CHAPS payments.

More information regarding APP Fraud Reimbursement and your rights can be found here.