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An introduction to Authorised Push Payment (APP) fraud
APP fraud might start with a convincing text from your “bank”, a fake investment opportunity, or even an online relationship that feels real.
These scams often look professional. They use polished branding, convincing reviews, and names that sound legitimate. And the scammers are getting smarter, fuelled by new technologies like AI. That’s why knowing the warning signs – and how to avoid them – is so important.
In this guide, we provide some advice on how to spot the red flags and explain what you can do if you’ve already been caught out.
APP fraud is one of the costliest scams in the UK. According to UK Finance, victims lost £450.7 million in 2024 alone.
Authorised Push Payment fraud happens when someone is tricked into transferring money from their own account to a criminal. Unlike credit or debit card fraud, where a transaction might be flagged and reversed, APP fraud involves payments approved by the victim themselves.
Victims often believe they’re:
In reality, the money goes straight into a fraudster’s account and is quickly moved through multiple banks — often overseas — to make recovery difficult.
APP fraud comes in many forms, each exploiting different emotions — fear, urgency, trust, or even love. The most popular forms of APP fraud are:
Fraudsters may pose as financial advisers or firms. Victims are persuaded to transfer money into fake schemes, property, shares, cryptocurrency, or bonds. To make their scams convincing, investment fraudsters use professional-looking websites, official-style paperwork and, in some cases, stolen identities.
According to UK Finance, losses from investment scams in 2024 hit £144.4 million, making this the costliest type of APP fraud in the UK.
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 usually rushed into transferring money before they have time to think twice.
In romance scams, criminals build fake online relationships over weeks or months. Once trust is established, they ask for money for emergencies, travel, or family crises, with victims often sending 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.
In February 2025, a man who lost more than £200,000 in a romance scam told the BBC the fraudsters almost destroyed his life. The man began talking to the scammer on a dating app. He lost everything and ended up in debt. Fortunately the money was eventually recovered.
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.
According to UK Finance, losses from purchase scams reached £87.1 million in 2024, with case numbers down 16%.
APP fraud stands out because of the unique way it tricks victims and the serious impact it leaves behind.
Unlike card fraud, where unauthorised transactions can often be reversed, APP fraud involves victims approving the transfer themselves. Banks treat the payment as genuine, even though it was made under false pretences. This makes recovery far more complex.
Once the transfer is made, funds are often split into smaller amounts and moved quickly through multiple accounts, sometimes even abroad. This makes the trail go cold almost instantly, leaving victims feeling like their money has vanished into thin air.
APP scams exploit human emotions. Whether it’s a romance scam that builds over months or a “bank” warning you of fraud, victims often believe they’re helping someone they care about or protecting their own savings.
Losing money is painful, but the psychological toll can be worse. Many victims feel ashamed or blame themselves for “falling for it”, even though these scams are designed to trick anyone, no matter how careful or financially savvy. That shame can stop people from seeking help.
Once someone has been targeted, they may be approached again. Fraudsters sometimes sell victim details to other criminals, leading to repeat scams or “recovery fraud”, where victims are tricked into paying yet more money to supposedly win their losses back.
APP fraud is dangerous because it drains bank accounts and damages confidence, leaving people feeling powerless, which is why strong protections and support are so vital (more about this coming up!).
Social media and online marketplaces originated 70% of APP fruad in the UK in 2024.
Criminals are now using artificial intelligence (AI) to supercharge their scams, making them harder to detect and much more convincing than the phishing emails of the past. The result is that even the most cautious people can be tricked.
Some of the ways scammers are using AI include:
With just a short audio clip, AI can generate a near-perfect copy of someone’s voice. Fraudsters have started combining this with classic “Hi Mum” scams, following up a text with a phone call that sounds exactly like a child or partner in distress. Hearing a familiar voice say, “I need money urgently”, can make it almost impossible to think clearly.
Video manipulation is another tool in the scammers’ arsenal. While still emerging, there are growing reports of criminals creating deepfake clips of company directors, financial advisers, and celebrities promoting fake investments. A convincing video that looks real can be enough to build trust and persuade someone to transfer money.
In 2023, a frightening deepfake featuring consumer finance expert Martin Lewis appeared on Facebook and Instagram, promoting a fake investment scheme tied to Elon Musk. The AI-generated video was highly convincing and went viral, causing public alarm. The clip prompted Martin Lewis to warn: “This is frightening … they are going to get better”
Gone are the days when scam emails could be spotted by dodgy spelling and grammar. AI writing tools allow criminals to produce flawless texts, emails, and social media posts. Some can even generate personalised messages, making them feel more natural and targeted. This makes APP scams appear credible and harder to question.
Some APP scams rely on building trust over time, especially romance or investment scams. AI chatbots are now being used to sustain conversations 24/7, adapting to a victim’s responses and creating the illusion of a genuine person behind the screen. This persistent, believable engagement can wear down defences until victims are ready to part with money.
In Q1 2025, 35% of UK businesses reported being targeted by AI-related fraud, up from 23% a year earlier. That sharp rise shows how quickly fraudsters are adopting AI and the scale of the challenge ahead.
For years, victims of APP fraud faced a second shock after the scam itself: their banks often refused to refund them.
The argument was that because the victim authorised the payment, the bank had no responsibility to put things right. This left many people out of pocket and feeling abandoned.
For a while, there was a voluntary reimbursement code that banks could sign up to, but that changed in October 2024, when the Payment Systems Regulator (PSR) introduced new mandatory reimbursement rules.
These rules marked a huge shift in consumer protection.
To qualify for reimbursement, banks may assess whether the customer acted with gross negligence. This is a high threshold, and the rules recognise that even careful, financially aware people can be deceived.
Under the APP fraud reimbursement rules, individuals, charities, and micro businesses may be eligible to make a claim.
For victims, these rules offer a real chance to get their money back. That said, claiming isn’t always straightforward.
In APP fraud claims, banks may still push back, raise questions about negligence, or delay decisions. For many victims, dealing with the paperwork, deadlines and appeals process can feel overwhelming, especially when they’re already dealing with the emotional fallout of being scammed. This is where a trusted solicitor can often help.
Important: This protection does not apply to international transfers or payments made via cryptocurrency platforms. If the payment didn’t travel over Faster Payments or CHAPS, it’s unlikely to be covered.
In 2024, UK banks reimbursed over £267 million to APP fraud victims, a sign that the new framework is making a real difference.
While APP fraud can be incredibly convincing, there are common red flags that can help you spot when something isn’t right. Being aware of these warning signs, and knowing a few simple steps to protect yourself, can make a big difference.
If you’ve already been tricked, help is available and you may be able to claim your money back under the APP fraud rules.
APP fraud can happen to anyone. But research shows that some groups may be more vulnerable than others:
The key point is that circumstances may make someone more likely to be targeted or deceived. And criminals are experts at spotting and exploiting those circumstances.
Following APP fraud, victims often describe it as one of the most distressing experiences of their lives, affecting both their money and their wellbeing.
This is the most obvious and immediate consequence. While some scams involve small, repeated charges that add up over time, others can wipe out your savings in one hit. Some people lose savings they’ve built up over a lifetime. For small businesses or charities, a large fraudulent payment can threaten their survival.
Money loss is bad enough, but the psychological toll can be just as damaging. Victims often feel embarrassed, ashamed, or blame themselves. The stress can lead to anxiety, sleeplessness, and in some cases, depression.
APP scams often exploit personal relationships, whether it’s romance scams or criminals posing as family members. This can leave victims feeling unable to trust others, even those close to them.
Victims may spend months dealing with banks or the Financial Ombudsman to try to recover money. This is often time-consuming, frustrating, and draining.
Once someone has been scammed, their details may be sold on to other criminals. This can lead to further scams, including so-called “recovery frauds”, where victims are tricked into paying again to supposedly get their money back.
APP fraud often erodes confidence. Many victims feel isolated, believing they “should have known better”. But the reality is these scams are sophisticated and designed to trick anyone.
APP fraud can be financially devastating. But acting quickly can limit the damage and help you recover your losses. Here’s what to do:
Early reporting helps stop funds moving.
Keep texts, emails, invoices, receipts, or screenshots.
You may qualify for reimbursement under the new rules.
If eligible, you might be able to recover what you’ve lost. You can make a free DIY claim or use a solicitor.
if your bank rejects the claim, you can go to the Financial Ombudsman Service (FOS). alternatively, if you decide to use a solicitor, they will manage the appeal process for you – making the strongest possible case possible on your behalf.
As APP fraud becomes more common, many people are unsure what to do to protect themselves. Here are answers to some of the most common questions.
APP fraud is when you’re tricked into authorising a bank transfer to a fraudster. It includes scams like fake investments, bogus invoices, or online purchases that never arrive.
Many scams involve crypto, but the rules apply the same way if your payments went through a UK bank account.
Yes. Multiple smaller payments can be treated as one scam if they were made in quick succession.
You may still be eligible if you had reason to believe the payment was genuine. Only gross negligence can block reimbursement, and that bar is set very high.
The maximum is £85,000 per scam under the mandatory regime. The amount you receive will usually match the money you lost (up to that cap).
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