Protecting Yourself from Scams and Fraud UKAPP Fraud UK — Authorised Push Payment Scams Explained
Guide to authorised push payment fraud in the UK. How APP scams work, how to protect yourself, and getting your money back under the new rules.
Start here: Scams and Fraud Hub.
APP fraud is one of the fastest-growing scam types. Here’s how to protect yourself and what to do if it happens.
Understanding APP Fraud
What Makes It Different
| Card Fraud | APP Fraud |
|---|
| Criminal takes money | You send money |
| Unauthorised | You authorise (while deceived) |
| Easier to refund | Historically harder |
| Bank’s systems compromised | You’re manipulated |
How Much Is Lost
| Statistic | Amount |
|---|
| Total UK APP fraud losses | £500+ million/year |
| Average individual loss | £3,000-£5,000 |
| Large cases | £10,000-£100,000+ |
| Most common victims | Adults 45+ |
Common APP Scam Types
Impersonation Scams
| Pretends to Be | Story |
|---|
| Your bank | “Fraud on your account, move money to safety” |
| Police | “Helping catch criminals” |
| HMRC | “Tax owed, pay immediately” |
| Utility company | “Cut off unless paid” |
Purchase Scams
| How It Works | Red Flags |
|---|
| Goods advertised | Price too good |
| Pay by bank transfer | No buyer protection |
| Goods never arrive | Seller disappears |
Investment Scams
| How It Works | Red Flags |
|---|
| High returns promised | Too good to be true |
| Pressure to invest fast | Limited opportunity |
| Transfer to “platform” | Actually scammer |
| Initial profits shown | To encourage more |
Romance Scams
| How It Works | Red Flags |
|---|
| Online relationship | Never meet in person |
| Trust built over time | Excuses for not meeting |
| Financial emergency | Always needs money |
| Wire transfer requested | Can’t be recovered |
Invoice/Payment Redirection
| How It Works | Red Flags |
|---|
| Fake invoice from supplier | Bank details different |
| Conveyancing fraud | Solicitor impersonated |
| CEO fraud | “Boss” requests urgent transfer |
| Details changed | Intercept genuine communications |
How to Protect Yourself
Verification Steps
| Before Paying | Do This |
|---|
| New payee | Verify through known channel |
| Changed details | Call on number you trust |
| Urgent request | Take time, verify |
| Large payment | Extra caution |
Confirmation of Payee
| Feature | How It Works |
|---|
| Name matching | Bank checks name matches account |
| Results | Match, partial match, no match |
| What to do | No match = stop and verify |
| Availability | Most major banks |
Warning Signs to Spot
| Red Flag | What It Might Mean |
|---|
| Urgency | Trying to stop you thinking |
| Secrecy | “Don’t tell anyone” |
| Changed bank details | May be fraud |
| Too good to be true | Probably is |
| Paying by bank transfer | Less protection |
Golden Rules
| Rule | Why |
|---|
| Hang up, dial back on known number | Verify caller |
| Never move money to “safe account” | Scam tactic |
| Trust your instincts | Unease means check |
| Take your time | Legitimate payers wait |
| Verify via different channel | Call, not email |
Getting Your Money Back
New Mandatory Reimbursement (October 2024)
| Feature | Details |
|---|
| Requirement | Banks must reimburse APP fraud |
| Timeline | Within 5 business days |
| Maximum | £85,000 |
| Exceptions | Gross negligence only |
| Excess | £100 excess may apply |
Previous CRM Code
| Feature | Details |
|---|
| Voluntary | Banks chose to sign up |
| Reimbursement | About 50% of cases |
| Assessment | Case by case |
| Often disputed | Banks could reject |
What “Gross Negligence” Means
| Not Gross Negligence | May Be Gross Negligence |
|---|
| Being tricked despite care | Ignoring clear fraud warnings |
| Sophisticated scams | Providing two-factor codes |
| First-time victims | Continuing after bank warning |
Steps If Scammed
| Priority | Action |
|---|
| 1 | Contact your bank immediately |
| 2 | Bank contacts receiving bank |
| 3 | Request investigation |
| 4 | Report to Action Fraud |
| 5 | Keep all evidence |
If Bank Refuses
| Step | Action |
|---|
| 1 | Ask for written reasons |
| 2 | Challenge specific points |
| 3 | Make formal complaint |
| 4 | Financial Ombudsman if needed |
| 5 | FOS can overrule bank |
What Banks Must Do
Warning Requirements
| Requirement | Details |
|---|
| Fraud warnings | Must display at payment stage |
| Confirmation of Payee | Check name matches |
| Effective warnings | Clear and specific |
| Allow delay | Customer can stop and check |
Investigation Process
| Stage | What Happens |
|---|
| You report | Bank opens case |
| Contact receiving bank | Try to freeze funds |
| Investigation | Assess circumstances |
| Decision | Reimburse or explain refusal |
| Timeline | 5 days for reimbursement |
Summary: APP Fraud Protection Checklist
Before Sending Money
| Check | Done |
|---|
| Verify payment details independently | ☐ |
| Use Confirmation of Payee | ☐ |
| Call on known number (not in message) | ☐ |
| Consider if it makes sense | ☐ |
| Take your time | ☐ |
Red Flags
| Warning | Stop and Check |
|---|
| Urgency/pressure | ☐ |
| Bank details changed | ☐ |
| Secrecy requested | ☐ |
| Too good to be true | ☐ |
| Bank transfer only | ☐ |
If You’ve Been Scammed
| Priority | Action |
|---|
| 1 | Call bank fraud line now |
| 2 | Report to Action Fraud |
| 3 | Keep all evidence |
| 4 | Don’t blame yourself |
| 5 | Complain if not refunded |
Your Rights
| Right | Details |
|---|
| Reimbursement | Up to £85,000 |
| Timeline | 5 business days |
| Exceptions | Only gross negligence |
| If refused | Formal complaint, then FOS |
| Service | Contact |
|---|
| Your bank fraud line | Number on card |
| Action Fraud | 0300 123 2040 |
| Financial Ombudsman | 0800 023 4567 |
APP fraud is devastating but increasingly victims are being refunded. The key is acting fast, reporting promptly, and knowing your rights. If a payment feels wrong, stop — legitimate recipients can wait while you verify.