Authorized Push Payment (APP) Fraud occurs when criminals deceive victims into willingly authorizing payments to fraudulent accounts, typically by impersonating legitimate entities or creating convincing scenarios that prompt urgent transfers.
Common Tactics
- Bank impersonation
- Business email compromise
- Emergency scenarios
- Authority figures
- Time pressure
Warning Signs
- Urgent requests
- Account changes
- Pressure tactics
- Unusual contacts
- Payment demands
Impact Areas
- Financial loss
- Personal data
- Account security
- Trust relationships
- Business operations
Prevention Methods
- Payment verification
- Contact confirmation
- Delay mechanisms
- Authentication steps
- Staff training
Security Measures
- Transaction alerts
- Verification processes
- Callback procedures
- Amount limits
- Payee confirmation
Best Practices
- Double verification
- Staff awareness
- Process controls
- Customer education
- Incident reporting
APP fraud exploits trust and urgency to bypass traditional security measures.