Scammers are becoming increasingly sophisticated each day, making it imperative for us to remain vigilant. We have compiled a collection of prevalent scamming schemes to aid in safeguarding yourself.
What are APP frauds?
APP (Authorised Push Payment) frauds are those where the victim is persuaded to authorise a payment by a fraudster who steals the funds. These are to be distinguished from non-authorised frauds such as when a victim’s account is hacked and their personal details are stolen by fraudsters and used to defraud them.
In an authorised push payment scam, a criminal will trick their victim into sending money directly from their account to an account which the criminal controls.
How to protect yourself from APP frauds?
Verify the Sender’s Identity
Be cautious when you receive unexpected emails, texts, or calls requesting personal or financial details.
Reach out to the organisation directly via official channels to verify the identity of the sender.
Do not disclose sensitive information without confirmation.
Utilise Secure Payment Methods
Ensure the legitimacy of the recipient and the security of the application when conducting financial transactions through banking or payment applications.
Look for verification marks and verify the recipient’s details to avoid any unintended funds transfer to an incorrect party.
Use Two-Factor Authentication
Using 2FA, such as Google Authenticator, adds an extra layer of security to your account and safeguards your funds.
Be Wary of Unsolicited Offers
If someone comes to you with a seemingly incredible investment opportunity, it is most likely not legitimate.
Before making any investments, it would be wise to diligently research the company or individual and seek guidance from a trusted financial advisor.
Report Suspected Scams
If you suspect you’ve been targeted by an APP scam, please promptly report it to us through our live chat or by contacting our support team at firstname.lastname@example.org.
Types of scams
UK Finance in their Annual Fraud Report have identified 8 different APP frauds typologies as follows:
Types of Scams
Ways to Prevent
The victim pays in advance for goods or services that are never received. These scams usually involve the victim using an online platform such as an auction website or social media.
A criminal convinces their victim to move their money to a fictitious fund or to pay for a fake investment. The criminal will usually promise a high return to entice their victim into making the transfer. These scams include investing in gold, property, carbon credits, cryptocurrencies, land banks and wine.
The victim is persuaded to make a payment to a person they have met, often online through social media or dating websites and with whom they believe they are in a relationship.
Advance Fee Scams
A criminal convinces their victim to pay a fee which they claim will result in the release of a much larger payment or as a deposit for high-value goods and holidays.
Invoice and Mandate Scams
The victim attempts to pay an invoice to a legitimate payee, but the criminal intervenes to convince the victim to redirect the payment to an account they control.
The scammer manages to impersonate the CEO or other high-ranking official of the victim’s organisation to convince the victim to make an urgent payment to the scammer’s account.
Impersonation Scams: Police/Bank Staff
The criminal contacts the victim purporting to be from either the police or the victim’s bank and convinces the victim to make a payment to an account they control.
Impersonation Scams: Other
Criminals claim to represent an organisation such as a utility company, communications service provider or government department. Common scams include claims that the victim must settle a fictitious fine, pay overdue tax or return an erroneous refund. Sometimes the criminal requests remote access to the victim’s computer as part of the scam, claiming they need to help ‘fix’ a problem.
The above information is sourced from the UK Finance Annual Fraud Report. For more details, kindly visit the website link provided below: