Open banking and fraud
What is Authorised Push Payment fraud?
Acronym: APP fraud
Quick definition: Authorised Push Payment fraud happens when someone is tricked into authorising a bank transfer to a fraudster or fraud-controlled account.
At a glance
- The victim authorises the payment, but under deception.
- It often involves impersonation, fake invoices or urgent pressure.
- Fast bank transfers can move money quickly.
- Customers should contact their bank immediately if they suspect fraud.
Explain it simply
Authorised Push Payment fraud is when a scammer tricks someone into sending money by bank transfer. The customer presses send, but they do it because they have been lied to. The scammer might pretend to be a bank, solicitor, builder, family member or official organisation. These scams can feel urgent and convincing. If you think this has happened, contact your bank straight away using a trusted number or app, not details given by the person who contacted you.
Student explanation
APP fraud is a major type of payment scam. The word authorised means the customer approved the transfer, while push payment means the money was sent from the customer's account to another account. The fraud lies in the deception around the payment. Examples include invoice redirection, romance scams, purchase scams and impersonation of banks or authorities. Students should understand why APP fraud is difficult: payment systems can move money quickly, and the customer may not realise the deception until after funds have left.
Professional explanation
Authorised Push Payment fraud is a fraud typology in which a payer is manipulated into initiating an account-to-account payment to a fraudster or mule account. It differs from unauthorised fraud because the payer's authentication and authorisation are usually valid, but consent is obtained through deception. Controls include customer education, behavioural analytics, transaction monitoring, Confirmation of Payee, scam warnings, mule account detection, interbank communication and reimbursement processes under applicable rules. APP fraud risk spans retail banking, payment systems, digital identity, social engineering and complaints handling, and requires careful distinction between negligence, vulnerability and sophisticated manipulation.
UK example
A fraudster emails fake solicitor bank details before a house deposit is paid, and the buyer unknowingly sends 5,000 pounds to the wrong account.
Why it matters
APP fraud language helps people understand why bank transfer scams are serious and why checking requests through trusted channels matters.
Common misunderstanding
APP fraud is not harmless because the customer pressed send; the payment was authorised under deception.