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The Rise in Authorised Push Payment (APP) Scams – How to Protect Yourself from Fraud

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Unfortunately, there is a rising trend in authorised push payment scams, and fraudsters are increasingly utilising social media platforms to prey on individuals, making this issue more alarming. Even the most vigilant observers are finding it challenging to detect these sophisticated scams. The integration of artificial intelligence has made the once easily noticeable red flags far more difficult to identify.


An Authorised Push Payment (APP) scam deceives individuals into sending money to criminals who impersonate trustworthy organisations. Unlike other forms of fraud, APP scams depend on persuading victims to approve the transactions, which complicates the process of retrieving their lost money.


This article seeks to outline typical APP scams and provide advice on safeguarding yourself against these schemes.


1. Impersonation Scams

Impersonation scams rank among the most common forms of APP fraud. In these schemes, fraudsters pose as trusted entities like your bank, a utility company, or even the police. They may reach out via phone, email, or text, using fake phone numbers or email addresses that seem authentic. Typically, these scams create a false sense of urgency, pushing you to respond hastily without confirming their identity. Some particularly cunning scammers even pretend to be a distressed family member or friend, urgently asking for financial assistance.


Protection Tip: Ensure you confirm the caller's identity by reaching out to the organisation directly with a trusted contact number. Refrain from sharing personal or financial information via phone or email unless you are absolutely sure of the recipient's authenticity.


2. Invoice Fraud

This fraudulent scheme is directed at businesses, where con artists masquerade as suppliers or contractors. They issue counterfeit invoices or alter the payment information on authentic ones, pressuring companies to transfer funds into an account managed by the fraudster. Often, businesses only become aware of the deception when the genuine supplier questions the unpaid invoice.


Protection Tip: Implement a verification procedure for any modifications in payment details, such as confirming directly with the supplier using pre-established contact information. Consistently review and verify all invoices prior to authorising payments.


3. Investment Scams

Investment scams often allure individuals with promises of substantial profits, using counterfeit websites or documents to appear trustworthy. Con artists may disguise themselves as financial advisors or legitimate investment companies, persuading victims to move their money into fraudulent schemes. These scams entice people with the allure of rapid gains, but instead, victims typically lose all their funds.


Protection Tip: Exercise caution with investments that appear unusually lucrative. Confirm the legitimacy of any investment firm through official sources like the Financial Conduct Authority (FCA) register and always obtain independent financial advice before committing to significant investments.


4. Romance Scams

In romance scams, con artists craft fictitious profiles on dating sites or social media to form connections with unsuspecting individuals. After gaining their trust, they concoct tales of financial distress, requesting money transfers to resolve fabricated crises. These scams cause significant emotional and financial harm, leaving victims feeling betrayed and financially depleted.


Protection Tip: Exercise caution when developing online relationships. Refrain from transferring money to individuals you have not met face-to-face and seek the opinion of a reliable friend or family member before taking any action.


5.Purchase Scams

Purchase scams are schemes where fraudsters pretend to be vendors of products or services, frequently on internet marketplaces or classified advertisements. Victims end up paying for goods that either never reach them or are vastly unlike what was promoted. These schemes take advantage of the buyer's desire to snag a bargain.


Protection Tip: Opt for secure payment options that provide buyer safeguards and be cautious of sellers who push for bank transfers. Check reviews and ratings before buying from unknown websites or sellers.


The final takeaway is that authorised push payment scams pose a considerable risk, yet maintaining awareness and caution can shield you from becoming a target. Always take the time to confirm the authenticity of any requests for money transfers and promptly report any dubious activities to your bank and Action Fraud, the UK's central hub for reporting fraud and cybercrime.


By remaining informed and vigilant, you can stay ahead and protect your finances from these fraudulent schemes.


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