What Is APP Fraud? Authorised Push Payment Scams Explained
APP fraud stands for Authorised Push Payment fraud, and the latest data from UK Finance shows that losses reached £576.4 million in 2025. Despite the growing scale of the problem, many victims are unaware that they may have a legal right to reimbursement under new APP fraud reimbursement rules introduced in October 2024.
In this article we will discuss what APP fraud is, some common types of APP scams, the warning signs you can look out for and how victims of Authorised push payment scams can recover their funds.
What is APP fraud?
APP fraud happens when a scammer manipulates a victim into willingly authorising a real-time transfer (or "push") of money to an account controlled by the fraudster.
Unlike unauthorised fraud, where a criminal takes money without your knowledge, in APP fraud the victim authorises the payment themselves, often after being deceived by impersonation scams, investment fraud, romance scams, or fake purchase schemes. It is one of the most prevalent and financially damaging forms of financial crime in the UK.
How Does APP Fraud Work?
APP Fraud happens when fraudsters deceive you into sending them money in multiple different ways and forms of contact. They may say they need money for something that isn’t true or present an opportunity to earn money from sending them the funds.
They can ask for the money to be sent in different ways too, they may ask for a faster payment through a bank transfer, credit or debit card payment through a link, payment through cryptocurrency or PayPal friends and family. The payment will be requested into an account the fraudster controls and they will provide their details so they can receive the payment.
Common Types of APP Fraud
Authorised push payment fraud can be presented in multiple different forms, here is a list of some the most common ones:
Criminals advertise goods or services that do not exist, often through fake websites, online marketplaces, or social media. Victims pay for items that are never delivered or are significantly different from what was advertised.
Impersonation/safe account scams
Fraudsters impersonate official figures such as; HMRC, the police or your bank and deceive you into moving funds into an account controlled by them
Fraudsters present an legitimate looking investment opportunity, after you have sent the funds it appears the investment was not as it was presented or real.
Fraudsters pretend to be expert traders and persuade you to invest your funds through cryptocurrency.
Fraudsters create fake online identities and build emotional relationships with victims before requesting money for emergencies, travel expenses, or other fabricated reasons.
Invoice scams occur when fraudsters send fake invoices or payment requests, often impersonating legitimate suppliers or service providers. Victims are tricked into paying for goods or services that were never ordered or provided.
Job/task scams happen when a scammer offers you a job, usually in completing tasks to earn commission. Once you have completed the tasks, the scammer will ask for fees to withdraw and never release the funds.
How to Spot the Warning Signs of APP Fraud
Red flags of APP fraud can differ per scam, however there are some common warning signs we see across all APP scams:
Unsolicited contact through a phone call, WhatsApp message or Email
Opportunity is presented online
Pressure to send money urgently
Unrealistic or guaranteed returns
Being asked to move money to a ‘safe account’
Unexpected payment requests
Unregulated firms - you can check the FCA register to verify
Fraudsters often use similar tactics to pressure and manipulate their victims. By recognising these warning signs, you can take steps to protect yourself and your money from APP scams.
APP Fraud Reimbursement: Can You Get Your Money Back?
Becoming the victim of an APP scam can have a devastating impact, however there are certain protections in the UK that mean you may be likely to receive an Authorised push Payment refund.
On 7 October 2024, the Payment Systems Regulator (PSR) introduced Mandatory Reimbursement (MR) for APP fraud. This was a major shift, and it benefits scam victims.
Refunding scam victims is now a legal obligation, not a goodwill gesture. Most APP fraud victims must be refunded by their bank usually within 5 business days.
Key rules of the Mandatory Reimbursement model:
Covers UK to UK payments via faster payments and retail CHAPS payments
Maximum refund of £85,000 per claim
Banks can deduct an excess of £100 per claim (This does not apply to vulnerable customers)
Victims must report the the scam and provide the info promptly
Banks cannot delay claims indefinitely
Applies to individuals, charities and microenterprises
What this means for you: If you were manipulated into transferring money, getting your money back from your bank will likely mean they have to reimburse you, and quickly.
If you sent your funds before October 2024 then you may still have protections depending on what bank you used to send the payment.
If your bank is signed up to the Contingent Reimbursement Model (CRM) Code and you meet the criteria below, you might be able to claim your money back:
You made the payment from your UK bank account after the 28th of May 2019
Your payment was sent to another UK bank account
Check our list of participating banks to see if yours is signed up to the CRM code.
What is APP Fraud Reimbursement?
Victims of APP fraud can claim back their lost funds from their bank or payment provider. Since October 2024, UK banks and payment firms are legally required by the Payment Systems Regulator (PSR) to reimburse eligible victims up to £85,000. Claims must be submitted within 13 months of the fraudulent payment.
When Might a Bank Refuse to Reimburse You?
Under the PSR's mandatory reimbursement rules, a bank can refuse your claim if it can demonstrate you acted with gross negligence, for example, by ignoring a specific, tailored warning that a payment was fraudulent. Banks may also refuse if the claim is submitted more than 13 months after the payment, if the transaction was made via cash, card, or cheque rather than a Faster Payments or CHAPS bank transfer, or if you are alleged to have been complicit in the fraud. Gross negligence is a deliberately high legal threshold and cannot be applied to vulnerable customers. If your bank has refused your claim, it may not be a valid refusal.
What to Do If You've Been a Victim of APP Fraud
If you have been the victim of APP fraud there are steps you can take to protect yourself and recover your money:
Stop communication immediately
Do not send any further payments
Report the fraud to Report Fraud
Contact the bank and tell them what happened
If your bank rejects your claim, you still have options. You can escalate your complaint to the Financial Ombudsman Service (FOS), which provides an independent review of disputes between consumers and financial firms. Before doing so, you must first submit a formal complaint to your bank and receive its final response letter.
It's important to act promptly. You have six months from the date of your bank's final response to refer your complaint to the Financial Ombudsman Service.
The Financial Ombudsman Service is free to use. Alternatively, you may choose to work with an FCA-regulated claims management company, such as Refundee, who can guide you through the claims process and help you pursue the recovery of your funds.
Frequently asked questions:
How long do I have to claim APP fraud reimbursement?
This can depend on a number of factors. In the Mandatory Reimbursement rules you need to report the scam to the bank within 13 months of the fraudulent payment. You can raise a claim to the Financial Ombudsman Service up to a maximum of 6 years from when you made the payment, however you must do this within 6 months of receiving a Final Response Letter from the bank.
Does APP fraud reimbursement cover crypto scams?
In some cases yes, if you sent the funds from a UK bank account then you still have rights to claim under authorised push payment reimbursement rules.
What are three common types of fraud?
Investment Fraud – Scammers persuade victims to invest in fake or misleading opportunities, such as cryptocurrency schemes, forex trading platforms, or property investments, by promising high returns with little risk.
Romance Fraud – Fraudsters create fake online identities and build emotional relationships with victims before requesting money for emergencies, travel expenses, or other fabricated reasons.
Purchase Fraud – Criminals advertise goods or services that do not exist, often through fake websites, online marketplaces, or social media. Victims pay for items that are never delivered or are significantly different from what was advertised.
How Refundee Can Help:
Refundee is authorised and regulated by the Financial Conduct Authority (FRN: 937096). We are specialists in APP fraud recovery and UK banking regulations, and we have recovered over £130 million for clients to date.
With Refundee, you get:
A free no obligation case review
Clear communication on your next steps for recovery
Guidance on if you have a right to claim
Help challenging refund refusals and escalating complaints
No win, no fee support - you only pay if your claim is successful - Read about the fees we charge.
If you have lost money to an APP scam then Refundee may be able to help you recover your funds.
Start your free eligibility assessment — or read verified reviews from our clients on Trustpilot.
More about Refundee
Here are the technical bits:
Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.
Registered with the Information Commissioner's Office; registration number: A8986071.
Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.
Registered as a company in England & Wales; number: 12855931.
