Push Payment Fraud: Common scams and how to avoid them

Push Payment Fraud, also known as Authorized Push Payment (APP) fraud, is the most rapidly growing form of financial crime.

Unlike traditional fraud, where transactions are unauthorized, push payment fraud occurs when individuals or businesses willingly transfer funds under false pretences. Victims are tricked into bypassing their bank’s own security procedures in order to send the fraudsters money.

Once the money is sent, recovering it can be extremely difficult: the fact that they were the ones who authorised the transaction means that victims of Push Payment Fraudsters can run into problems getting their bank to support them or get back the money stolen.

In this article, we will explore common push payment scams, how to avoid them and what recourse there is if you fall prey to one.

Common Push Payment Scams

1. Impersonation Scams

One of the main hallmarks of push payment scams is impersonation. Fraudsters pose as trusted individuals or organizations to convince victims to transfer money. The most common include:

Bank impersonation: Scammers call, text or email, claiming to be from the victim’s bank and requesting an urgent transfer to a “safe account.”

Government scams: Fraudsters pretend to be tax authorities like HMRC, demanding immediate payment to avoid penalties or arrest.
Postal and delivery scams: Fraudsters send emails or texts pretending to be Royal Mail or a courier like DHL asking for payment in order to deliver a package. This can be very easy to fall for if you are waiting for a package.

Find out how to spot a delivery scam.

2. Invoice and Supplier Fraud

Businesses are prime targets for invoice fraud. Scammers hack into company emails or forge invoices to trick employees into paying fake suppliers. Some common variations include:

A fraudster impersonating a legitimate supplier and requesting payment to a different account.
Criminals hacking into email accounts to intercept and alter invoice payment details.

3. Romance Scams

Push Payment Scams can also get very personal. Romance scammers operate by developing relationships with their victims through dating sites or social media. Once trust is established, fraudsters fabricate emergencies or investment opportunities and request money.

Find out how to spot a romance scam.

4. Investment and Cryptocurrency Scams

Scammers promise high returns on fake investments, particularly in cryptocurrency, real estate, or stock markets. Victims are often pressured into sending large sums of money quickly before realizing the scheme is fraudulent.

Find out more about cryptocurrency scams.

5. Property and Rental Fraud

Scammers are taking advantage of the housing crisis, and the thousands of people who are desperate for housing. Fake landlords or real estate agents demand upfront payments for properties that do not exist or are not available for rent. Victims pay deposits or full rental amounts, only to discover they have been scammed.

How to Avoid Push Payment Fraud

1. Verify Before You Pay

Always verify payment requests by contacting the individual or company directly using official contact details, not the ones provided in the suspicious message.

2. Be Skeptical of Urgency

Scammers often create a sense of urgency to pressure victims into acting quickly. Take time to assess the situation before transferring money.

3. Check for Red Flags

Look for signs of fraud, such as grammatical errors in emails, unexpected payment requests, or slight changes in account details.

4. Use Bank Security Features

Many banks offer confirmation of payee services, which ensure that the name on the receiving account matches the one intended. Enable two-factor authentication for additional security.

6. Report Suspected Fraud

If you suspect fraud, report it to your bank immediately and notify local law enforcement or fraud reporting agencies such as Action Fraud (UK).

Push Payment Claims

Even though scammers may try to trick you into authorising a transaction, your bank should also offer you some support and protection – alerting you if they see suspicious activity on your account. Unfortunately, banks can fail people. However, if this happens, it is possible to get some money back.

When banks do not meet their requirements to act in their customers’ best interests and exercise reasonable measures to prevent financial loss for them, they are neglecting their duty.

We have a free guide that explains the bank’s duties, and how you can make a formal complaint about failures to protect you from fraud.

Download the Resolver free guide

If you’ve been a victim of a financial scam, and you feel that your bank failed to provide you with proper protection you may be eligible to make a compensation claim.

Claiming would not just help you recover your financial losses but places pressure on your bank to be more proactive in protecting their customers from purchase, investment, romance or crypto scams.

Our recommended provider for bank fraud claims, UK Fraud Helpline, will handle the details of your claim – and help you get compensated for your losses if your bank let you down.

Make a Bank Fraud claim now

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.