What is APP fraud?
Authorised Push Payment (APP) scams occur when a scammer deceives you into sending money to a person or account that you didn’t intend to, or for a purpose you didn’t agree to. This might happen if you think you’re paying a property deposit, settling an invoice, making an investment, or following a request from your bank or payment provider, only to discover later that the recipient was fraudulent.
How does APP fraud work?
- The scam: A fraudster may contact you and pose as someone you trust—like a bank, supplier, or solicitor. They may use convincing messages, emails, or phone calls to persuade you to make a payment.
- The push: You are then instructed to transfer funds to a specific bank account or provide payment details. The fraudster may even ask you to act quickly, creating a sense of urgency.
- You authorise: Despite the fraudster’s deception, you approve the payment, believing it's legitimate.
The fraudster receives the funds: Once you authorise the payment, the money is sent to the fraudster’s account. Unlike other types of fraud, the transaction is not unauthorised—you agreed to it, making it harder to reverse or cancel the payment.
What are some common examples of APP fraud that GetGround customers may come across?
Scenario 1
- You are in the final stages of purchasing a property.
- The fraudster gains knowledge of the transaction, often through phishing emails, hacking, or infiltrating the email accounts of a legitimate conveyancing solicitor.
The Fraudulent Activity:
- The fraudster - posing as the conveyancing solicitor - contacts you through a convincing email or message.
- They provide false bank details for transferring the deposit.
- The email or message may appear authentic, using a spoofed domain or cloned solicitor profiles to make the communication seem legitimate.
Execution:
- You transfer the funds to the bank account provided by the fraudster and the funds are then quickly withdrawn or transferred to other accounts, making recovery difficult.
Scenario 2:
- You’ve hired a builder to work on your property and agreed to pay in installments as the project progresses. The builder sends you invoices periodically, which you pay by bank transfer.
The Fraudulent Activity:
- A fraudster intercepts the builder’s email communications and they send you a fake invoice, pretending to be the builder, with updated bank details for payment.
- The email or invoice looks genuine, using the builder’s logo, formatting, and language.
Execution:
- The fraudster pressures you to pay quickly, claiming it’s urgent to secure materials or avoid delays on the project. Believing the invoice is real, you authorise the payment to the bank account provided.
If you notice something unusual or having any questions, please contact us immediately at gethelp@getground.co.uk.