Authorised Push Payment (APP) fraud remains one of the costliest types of scams in the UK, with losses running into hundreds of millions of pounds each year. But many people still don’t recognise the term, even if they’ve been affected by it.
Here’s what you need to know.
What is APP fraud?
APP fraud happens when you’re tricked into sending money, believing the payment is genuine. Victims might think they’re paying their bank, HMRC, a friend or family member, or for goods and services, but in reality, the money goes straight to a fraudster.
Different types of APP fraud
APP fraud doesn’t look the same in every case. Fraudsters use a wide range of tactics to trick people, depending on whether they’re playing on urgency, fear, or even love. Let’s look at some of the most common types of APP scams.
Investment scams
Fraudsters may pose as financial advisers or firms and convince people to put money into schemes that don’t exist. To make their scams convincing, investment fraudsters use professional-looking websites, official-style paperwork and, in some cases, stolen identities. Losses are often in the tens of thousands. In fact, investment fraud was the biggest source of APP losses in 2024, with £144.4 million stolen — a 34% increase on the year before.
The government has written to senior executives at major UK companies, urging them to prioritise cyber resilience.
Impersonation scams
In impersonation scams, criminals might pretend to be banks, HMRC, the police, or even friends and family. The infamous “Hi Mum” text — where scammers pose as children in need — is just one example. These scams work because they exploit emotions like fear and urgency. Messages may appear to come from genuine phone numbers or official-looking email addresses, making them hard to ignore. Victims are rushed into transferring money before they have time to think twice.
Romance scams
Fraudsters often build fake online relationships, then ask for money for emergencies or family issues. Victims might send money multiple times before realising the truth. For many people, the hardest part of a romance scam isn’t the money they’ve lost, it’s the emotional fallout.
Purchase scams
Purchase scams are the most common type of APP fraud. Fraudsters often advertise on online marketplaces, social media, or even set up fake websites. The listings look genuine and the prices seem tempting. Victims might pay for cars, pets, building work, or event tickets that never materialise. Losses from purchase scams hit £87.1 million in 2024.
Why APP fraud is so dangerous
APP fraud is particularly harmful because the payments are authorised by the victim. Unlike credit card fraud, these transfers are treated as if they were genuine – even though they were made under false pretences.
- Once a payment leaves your account, it moves quickly between banks, making it feel impossible to recover
- Fraudsters are skilled at building trust, using fake websites, spoofed phone numbers, and official-looking documents
- Victims are often left feeling ashamed or blamed, even though these scams are designed to deceive.
Worryingly, fraudsters are now using AI tools to make APP scams even more convincing. Voice cloning allows criminals to mimic the voices of friends or family members, while AI-written messages make scam texts and emails harder to spot. Some even use deepfake videos or AI chatbots to build “relationships” with victims, creating an added layer of realism.
The new rules
For years, victims of APP fraud struggled to get their money back. Banks often refused to reimburse, arguing that because the payment was authorised, they weren’t responsible.
That changed in October 2024, when the Payment Systems Regulator (PSR) introduced mandatory reimbursement rules. However, to be eligible, you’ll need to show you had good reason to believe the payment was genuine, and that you weren’t acting recklessly.
The new rules mean:
- Most banks and payment providers must reimburse victims who meet the eligibility criteria
- Claims must be made within 13 months of the last fraudulent payment
- Reimbursement is capped at £85,000 per scam, which covers the majority of cases
- Vulnerable customers have extra protection, and cannot be denied reimbursement for being “grossly negligent”
- Banks must reimburse quickly — within five business days, or up to 35 days if more investigation is needed
- Individuals, charities, and micro businesses may be eligible to make a claim.
Think you might have an APP fraud claim?
If you’ve been tricked into sending money, whether through an investment, impersonation, romance, or purchase scam, you could be entitled to compensation. You can complain directly to your bank for free, but navigating the process can be confusing and time-consuming. A specialist solicitor may be able to help.
