APP scams explained: common types and how to avoid them

If you’re tricked into transferring money to a fraudster pretending to be a person or organisation that you trust, then you've been caught up in an Authorised Push Payment (APP) scam.

Scammers target thousands of people and businesses – the Payment System Regulator says millions of pounds are lostOpens in a new window this way each year. 

Scams can affect more than just your money. It can be very stressful to be targeted and it may knock your confidence in dealing with your finances. It's well worth learning how to spot scams and protect yourself.

The National Crime Agency found that more than 40% of crime in 2024 was fraudOpens in a new window (including scams). These days fraudsters from all over the world can try to reach us through our phones, email, or the apps and websites that we visit. 

It’s scary and it’s all too easy to be caught out, but there are steps you can take to be on your guard.

Report Fraud – the place to tell the police about cybercrime and fraud – has an A to Z of widespread scamsOpens in a new window

In an APP scam, someone will get in touch with you asking you to send money by bank transfer. Scammers will usually put pressure on you, telling you it’s an emergency and you need to send the money quickly to make you act before you can think. A warning sign is that a scammer will be determined to get you to share your information, which no legitimate caller would ask you to do.

They’re often a step ahead of us when it comes to technology. They want us to give them access to our phones or laptops, often without us realising it. Some use AI to impersonate famous experts to seem more convincing. Others pretend they’re helping us with IT or our bank accounts.

Find out more about different types of scams.

Scammers will pretend to be any person or organisation you already trust. They might say they’re from: 

• your bank

• HMRC (the tax office)

• a well-known IT company

• an energy supplier

• or even pretend they’re members of your family.

If you’re contacted with a deal, or by someone telling you that they’re stopping you from being scammed, the chances are that this is too good to be true. End the call.

Another version that keeps coming round is where you get a message from a scammer pretending to be your child (or another family member) from an unknown number. 

The fraudster says they're your relative. They claim their phone is lost or broken and they’re contacting you on a friend's number or a new phone. The message seems urgent and plays on your emotions, saying that the person needs help.  

Do not risk sending money to a stranger's account, even if you think you’re helping someone close. Check first. Try to speak to your child in person or by phone, not just the way they first contacted you.

One way to protect yourself against this kind of scam is to agree a secret password or phrase within your family as a way of knowing it's the real person contacting you. This also guards against voice cloning.  

Starling Bank has guidance on safe phrasesOpens in a new window

You might be tempted by that amazing price or ‘must have’ tickets on online marketplaces and social media but watch out.  

If a seller is new or asks to move the conversation off platform to text or WhatsApp, be careful. If they want the payment by gift cards or a transfer, then what you think you’re buying may never arrive, or the tickets might not work. 

Watch out for ‘make easy money from home’ job listings too. 

Find out more about How to spot an investment scam. 

These scams involve fraudsters conning us into thinking we’ve met someone special online, which somehow ends up with us being asked to transfer money. Some scammers have upped their game and now use AI to pretend to be someone they are not. 

Another version that Report Fraud has researched targets younger or other vulnerable peopleOpens in a new window ending up in blackmail.

Find out more about how to spot dating scams. Report Fraud has video examples and guidanceOpens in a new window

Some scammers specialise in the latest refund or compensation story in the news. Someone who seems helpful tells you to register now for a Warm Home discount or mis-sold car finance compensation, but really, they’re just after your personal or bank information. 

Never assume a message or call is genuine. Put down the phone and instead contact the organisation directly yourself.

The DWP or other government departments won’t contact you directly to tell you you’re entitled to a payment.

Use our Benefits calculator to see if you’re entitled to anything.  

If you need to check that a firm is authorised or registered with the Financial Conduct Authority (FCA), use their firm checker toolOpens in a new window

If any of these come up in messages or a call, be aware:

• pressure to act now 

• someone telling you it’s got to be a secret

• new payee changes 

• requests to move to WhatsApp or Telegram or to use ‘safe account’ transfers 

• QR code or payment link pushes - risks explainedOpens in a new window by the National CyberSecurity Centre.

See more information on How to spot and avoid bank scams.

• Never use links in messages that came to you uninvited.

• Use  two-factor authenticationOpens in a new window (2FA) as an extra layer of security, for example when you’re logging in to your bank, Google or Apple accounts.

• If you think a payment is valid, but just want to be sure, pay a small test amount first to check that it goes to the right place.

• Agree safe phrasesOpens in a new window in your family. 

• Sign up to Report Fraud’s scam alertsOpens in a new window

• Use the FCA Firm checker toolOpens in a new window

There's more information on the government’s Stop! Think FraudOpens in a new window site.

Try to keep calm, even though this is a really stressful situation. Stop the call or messaging right away. Then ring your bank or payment provider directly to tell them what's happened. 

Look up the bank’s contact number yourself on your card or statement. Scammers like to feed you a false number where you’re still actually talking to them and not your bank. 

Or, you can dial ‘159’ for StopScams UKOpens in a new window instead. This is an emergency hotline that connects you to your bank’s fraud department.

See more information on how to tell if you’re being targeted for a scam.

Learn what to do if you think you have already been scammed.

If you’ve been targeted, even if you didn’t send any money, contact Report Fraud on 0300 123 2040. In Scotland, it’s 101, or Advice Direct Scotland on 0808 800 9060.

Banks and payment providers should reimburse you if you’re affected by APP fraud and sent money by UK bank transfer. They must send your refund within five working days after you make a claim. 

Keep records so that you can provide evidence.

Find out more about the rules and limits in How to get a refund for bank transfer scams.

The Financial Ombudsman handles complaints about banks and APP FraudOpens in a new window

• Do not reply to unexpected calls, emails, or texts that seem to be from your bank.

• Choose a secure password. Consider using a password manager.

• Use two-factor authenticationOpens in a new window (2FA) as an extra layer of security.

• Opt in to your banking apps’ payment and transfer alerts so you can spot any surprises.

• Keep your systems and apps up to date.

• Many banking apps check that the name of the person you’re about to pay matches up with the details of the account you’re paying into. This should reduce the risk of money going to the wrong person.

See How to sort out a problem with a payment.