Authorized Push Payment (APP) Fraud
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Authorized Push Payment (APP) fraud tricks individuals into willingly sending money to scammers, with U.S. losses projected to reach $3.08 billion by 2028.
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How It Works
1
A scammer first makes contact, often online or through a phone call, impersonating a trusted entity like a bank, government agency, utility company, or even a friend or romantic interest.
2
The scammer creates a convincing story and a sense of urgency. They might claim your account is compromised and you must move money to a 'safe account,' that you owe an urgent fee, or that a lucrative investment opportunity is about to expire.
3
Following the scammer's instructions, you log into your own bank account and 'push' a payment to the account they control, believing it is for a legitimate purpose. Because you authorized the transaction, recovering the funds is extremely difficult.
Red Flags
- Unexpected requests for immediate payment via bank transfer or instant payment apps.
- High-pressure tactics that create a sense of urgency, panic, or fear.
- A contact claiming to be from your bank or a government agency asks you to transfer money to a 'safe account.'
- Last-minute changes to payment details or bank account information for an existing supplier or contractor.
- The name on the account you are asked to pay does not match the name of the person or company you expect to pay.
- Offers or opportunities that seem too good to be true, such as guaranteed high-return investments.
- Requests for secrecy or instructions not to tell anyone, including your bank, about the payment.
What to Do If Targeted
- If you have sent money, contact your bank or payment service immediately to report the fraud and ask them to stop or reverse the transaction.
- Stop all contact with the suspected scammer immediately. Do not send them any more money or personal information.
- Gather all records of your communication with the scammer, including emails, text messages, and transaction details.
- Report the fraud to the appropriate authorities, such as the Federal Trade Commission (FTC) and the FBI's Internet Crime Complaint Center (IC3).
- Change your passwords for online banking and any other accounts that may have been compromised.
- Place a fraud alert on your credit reports with the major credit bureaus (Equifax, Experian, TransUnion).
How to Report It
- FTC — Report fraud to the Federal Trade Commission to help with law enforcement investigations.
- FBI IC3 — File a complaint with the FBI's Internet Crime Complaint Center for cybercrimes.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- U.S. losses from Authorized Push Payment (APP) fraud are projected to rise from $2.16 billion in 2023 to $3.08 billion by 2028. — ACI Worldwide 2024
- In the UK, criminals stole £459.7 million through 232,429 cases of APP fraud in 2023. — UK Finance 2024
- Imposter scams, a common type of APP fraud, were the second-highest source of fraud losses reported to the FTC in 2024, totaling $2.95 billion. — FTC 2025
- In 2023, 76% of APP fraud cases originated online, while 16% started through telecommunications. — UK Finance 2024
- Bank transfers and payments accounted for the highest aggregate fraud losses reported in the U.S. in 2024 at $2.09 billion. — FTC Sentinel Network Data Book 2024
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Frequently Asked Questions
Authorized Push Payment (APP) fraud is a scam where criminals trick you into sending them money from your bank account. The payment is 'authorized' because you, the legitimate account holder, initiate the transfer yourself, often believing you are paying a genuine person or business.
Recovering funds from APP fraud is very difficult because you technically authorized the payment. You must contact your bank immediately to see if the transaction can be stopped or reversed. While some banks may offer reimbursement under certain conditions, it is not guaranteed.
Scammers initiate APP fraud through various channels, with the majority originating online. According to UK Finance, 76% of APP fraud cases in 2023 started online, often through social media, phishing emails, or fake websites. Another 16% of cases began through telecommunication, such as phone calls or text messages.
Yes, businesses are major targets for APP fraud, often through scams like invoice redirection or CEO fraud. In 2023, UK businesses lost £83.3 million to APP scams. Scammers impersonate executives or vendors to trick employees into authorizing large payments to fraudulent accounts.
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