An Authorised Push Payment (APP) is an electronic funds transfer initiated by you, the payer, and sent to a recipient's account. The key thing to understand is that although you authorised the transfer, scammers may have tricked you into doing so. In other words, the authorisation itself is fraudulent.
APP fraudsters typically use social engineering tactics. This means they manipulate you into making a payment by impersonating a trusted person or organisation. For instance, they might call you pretending to be from your bank or a utility company. They pressure you to make an immediate payment to resolve a fictitious problem.
Here are some of the common ways fraudsters trick people into making APP payments:
- Impersonation: The scammer pretends to be from a bank, credit card company, government agency, or other trusted organisation.
- Urgency: The scammer creates a sense of urgency, pressuring you to act quickly without thinking things through.
- Phishing: The scammer sends emails or text messages that appear to be from a legitimate source, tricking you into clicking a malicious link or providing personal information.
How to Protect Yourself From APP Fraud
- Be wary of unsolicited calls, emails, or texts requesting immediate payment.
- Verify the caller's identity by contacting the organisation they claim to represent through a trusted phone number, not one they provide to you.
- Never share your financial information or account details with someone who contacts you unexpectedly.
- Be cautious about clicking on links or opening attachments in emails or text messages from unknown senders.
If you think you have been a victim of APP fraud, report it to your bank immediately. The sooner you report it, the better chance you have of recovering your funds.
By following these tips, you can help protect yourself from APP fraud. Remember, if something sounds too good to be true, it probably is. Don't be afraid to take your time and verify the legitimacy of any request for payment before sending money.
