Understanding Authorised Push Payment (APP) Fraud in the UK
What Is APP Fraud?
Authorised Push Payment (APP) fraud occurs when you are tricked into sending money to a fraudster's account by someone pretending to be a trusted person or organisation — your bank, HMRC, a solicitor, a romantic partner, or a supplier. Because you technically authorise the payment, it differs from card fraud where your details are used without your knowledge.
Why APP Fraud Is So Damaging
APP fraud is the UK's largest fraud category by value. UK Finance reported over £500 million in APP losses in recent years. Victims often lose life savings, house purchase deposits, or pension funds — with the psychological impact compounding the financial devastation.
Common APP Fraud Scenarios
- Bank impersonation: Fraudsters call claiming your account is compromised and ask you to move money to a "safe account" — which they control
- Invoice fraud: A criminal intercepts emails between you and a solicitor or supplier and changes the bank details on an invoice
- Romance scams: Fraudsters build emotional relationships online over weeks or months before requesting money transfers
- Investment fraud: Convincing websites and pressure tactics persuade victims to transfer large sums to "investment platforms"
New Reimbursement Rules (2024)
Following FCA pressure, UK banks introduced mandatory APP reimbursement — victims of most APP fraud must be refunded up to £85,000 within five working days. Both the sending and receiving bank share responsibility for covering losses. This was a major consumer protection improvement.
Protecting Yourself
- Always verify new payee details via a known phone number — never use contact details in the suspicious message itself
- Slow down — urgency is the fraudster's primary weapon
- Use Confirmation of Payee to verify account names before sending money
- Never move money to a "safe account" — legitimate banks never ask this
