Authorized Push Payment (APP) Fraud: A Global Threat

What is Authorized Push Payment (APP) Fraud?

Authorized Push Payment (APP) fraud, also commonly referred to as push payment fraud, is a type of scam where victims are tricked into willingly transferring money to fraudsters. Under APP fraud, the payment is made by the victim themselves, often in real time, through methods like bank transfers or instant payment systems.

The fraud typically relies on social engineering tactics, where attackers impersonate trusted figures such as bank officials, company representatives, or even friends and family members. Through deception, urgency, or emotional manipulation, the fraudster convinces the victim that the payment is legitimate and necessary.

Because the transaction is “authorized” by the victim, reversing the payment can be difficult. This makes Authorized Push Payment fraud a particularly damaging and challenging form of financial crime.

How Does Authorized Push Payment Fraud Work?

Authorized Push Payment (APP) fraud occurs when a fraudster deceives the victim into authorizing a payment under false pretenses. It is a confidence-based scam that targets the most vulnerable link in the payment chain which is the human element.

Here’s how the sequence looks like:

1. Target identification. The fraudster selects a victim like an individual or business based on publicly available data, breached information, or simple reconnaissance (e.g., LinkedIn, social media, company websites).

2. Impersonation or pretext setup. The attacker assumes the identity of someone the victim trusts, such as:

• A bank representative
• A supplier or colleague
• A government official
• A romantic interest (in personal scams)

They may contact the victim by phone, email, SMS, or messaging apps.

3. Social engineering. The fraudster builds urgency or emotional pressure to convince the victim that the payment is legitimate. Common tactics of social engineering include:

• Claiming an account has been compromised
• Requesting payment for an urgent invoice
• Asking for a donation or financial help
• Offering a “secure account” for fund transfer

4. Payment authorization by the victim. Believing the request to be genuine, the victim voluntarily authorizes a bank transfer or instant payment to the fraudster’s account.

5. Funds are redirected to mule or offshore accounts. The money is quickly moved through multiple accounts, often via money mules or crypto to make tracing and recovery difficult.

6. Discovery (often too late). The victim later realizes the request was fraudulent, but since the transaction was authorized, banks may not always be obligated to refund the loss.

Types of APP Fraud Attacks

APP fraud encompasses a wide range of scams, including:

1. Invoice Scams (a.k.a. Mandate Fraud)

Fraudsters impersonate legitimate suppliers, contractors, or service providers and trick victims into paying fake invoices.

For example, a construction firm receives a convincing-looking email from what appears to be their long-time scaffolding supplier, requesting payment to a “new bank account”. The email includes a genuine-looking invoice with matching branding. Funds are transferred, only to later discover the real supplier never sent the request.

Who’s targeted: Businesses, solicitors, schools, SMEs, nonprofits

Red flag phrases: “We’ve updated our banking details,” “Urgent invoice,” “Final notice”

2. Investment Scams

Victims are lured into fake investment opportunities, often online, with promises of high returns, minimal risk, and fast profits.

Group-IB’s investigations show just how global and systematic these scams have become. In our deep dive into European investment scams, we uncovered networks of fake broker platforms that duped over 8,000 victims across 10 countries, raking in at least €500 million. Meanwhile, our global scam report revealed that 2023 saw over 2,000 scam pages launched monthly, many mimicking banks, regulators, and fintech firms.

Who’s targeted: Individuals (especially retirees, young investors, or crypto-curious)

Red flags: Guaranteed returns, pushy sales reps, no regulated backing, untraceable payments

3. Romance Scams

Scammers build fake emotional relationships online to manipulate victims into sending money.

Group-IB recently worked alongside INTERPOL on Operation Contender, helping dismantle a transnational gang behind a wave of such romance scams across Asia and Africa. The operation exposed how these scams have become industrialized, complete with call centers, scripts, and psychological playbooks tailored for maximum manipulation.

Who’s targeted: Individuals on dating platforms, widows/widowers, elderly
Common tactics: Long-term grooming, sob stories, sudden emergencies, emotional blackmail

4. CEO Fraud (Business Email Compromise)

Attackers impersonate C-level executives to trick employees into transferring company funds or revealing confidential data when it comes to BEC.

For example, a finance officer receives an email from what looks like the company’s CFO asking to wire $200,000 to a new vendor for a “confidential acquisition.” The email appears legitimate and carries the CEO’s signature. The money is sent, only later is the spoofed email discovered.

Who’s targeted: Finance departments, executive assistants, HR

Red flags: Urgent requests, “Do not share this,” external-looking emails disguised as internal

5. Impersonation Scams

Scammers pose as trusted entities like banks, police, or family members to manipulate victims into transferring money.

For example, someone gets a call that appears to be from their bank’s fraud department. The caller says their account is at risk and urges them to “move funds to a secure holding account” to protect their savings. Believing the scam, the victim transfers their life savings, straight into the attacker’s account.

Group-IB’s 2025 Digital Risk Trends Report highlights the explosive growth of impersonation scams, especially those involving brand abuse and spoofed digital assets. In just one year, over 870,000 malicious domains were detected globally, many impersonating major financial institutions and government agencies. And with generative AI now part of scammers’ toolkits, the fakes are getting eerily convincing.

Who’s targeted: General public, especially older adults
Tactics used: Spoofed caller IDs, urgency, fear of financial loss, posing as authority figures

6. Demand Deposit Account (DDA) Application Fraud

Fraudsters open checking/savings accounts using stolen or fake identities and use them for check fraud, fake deposits, or to receive stolen money from APP scams.

For example, a mule opens a DDA with fake documents and then receives payments from multiple romance scam victims. The money is quickly withdrawn or forwarded, obscuring the fraud trail.

7. Credit Card Application Fraud

Criminals apply for credit cards using stolen or synthetic identities, then make fraudulent purchases or cash withdrawals.

For example, a synthetic identity is created using a real Social Security number and fake personal details. The fraudster builds a credit profile, gets a card approved, and racks up charges, never intending to repay.

Global Impact of APP Fraud

The global impact of APP fraud is significant and growing, with substantial financial losses and a large number of victims worldwide. In 2023, APP fraud accounted for 75% of all digital banking fraud in dollar value. Losses in the US, UK, and India are expected to double by 2026, reaching $5.25 billion with a compound annual growth rate of 21%.

Financial Losses

APP fraud results in substantial financial losses for both individuals and businesses. Losses from APP scams in six major payment markets (US, UK, India, Brazil, Australia, and UAE) are projected to reach $7.6 billion by 2028. The overall value of real-time transactions is also expected to grow, with a compound annual growth rate of 25% during the same period.

The table below shows the projected APP fraud losses by country from 2022 to 2027:

Note: these numbers indicate the anticipated losses in six key payment markets and might not encompass the entire global effect of APP fraud.

Number of Victims

While precise figures on the number of APP fraud victims globally are limited, available data suggests that a significant portion of the population has been affected. In 2022, one in five global consumers surveyed reported falling victim to payment fraud in the past four years, with 26.9% being victims of APP scams. In the UK, 1 in 3 consumers have fallen victim to APP fraud, and over half (53%) believe it is becoming harder to spot the signs.

Challenges in Stopping APP Fraud

Three major factors are fueling the rise of APP fraud:

1. Social Engineering

Social engineering app fraud takes advantage of human nature, which opens the door to abuse. Scammers prey on stress, urgency, and emotion, whether someone’s going through financial pressure or just trying to do the right thing fast.

Add GenAI to the mix, and you now have fake voices, deepfakes, and near-perfect phishing messages at scale. It’s human manipulation, but automated.

Also Read: ClickFix: The Social Engineering Technique Hackers Use to Manipulate Victims

2. Real-time Payments

The faster money moves, the less time there is to stop it. In real-time payment systems, once the victim hits “Send,” the funds can be gone for good in minutes. Group-IB data shows:

• Over 60% of APP fraud goes unreported within 24 hours.
• More than 30% is still unreported after 48 hours.

That’s more than enough time for the funds to vanish into layered accounts, crypto wallets, or foreign jurisdictions.

3. Lack of Awareness

And that’s part of the problem. Many users assume if they authorized a payment, it must be secure. They don’t realize that being tricked into clicking ‘Confirm’ is the entire scam. Without basic awareness of social engineering tactics, people walk straight into well-crafted traps.

In addition to these challenges, the following factors also contribute to the difficulty in stopping APP fraud:

• Evolving Tactics: Fraudsters constantly adapt their tactics to circumvent security measures and exploit new vulnerabilities. This makes it challenging for financial institutions and authorities to stay ahead of the curve and develop effective prevention strategies.
• Jurisdictional Issues: The cross-border nature of many APP scams makes it difficult to investigate and prosecute criminals.
• The exploitation of weak systems and controls: Fraudsters can exploit variations in the level of control and anti-fraud measures in place at different Payment Service Providers (PSPs), creating loopholes that can be used to their advantage.

Regulatory and Authority Actions

Recognizing the growing threat of APP fraud, regulators and authorities worldwide are taking various measures to combat this crime:

Mandatory Reimbursement

In October 2024, the UK’s Payment Systems Regulator (PSR) introduced a new mandate requiring reimbursement for Authorized Push Payment fraud victims. This regulation compels Payment Service Providers (PSPs) to reimburse customers who fall victim to APP fraud, except in cases where the customer has exhibited gross negligence or committed fraud. The reimbursement costs will be equally shared between the sending and receiving PSPs. The main objective of this initiative is to protect consumers and motivate PSPs to improve their fraud prevention measures.

The reimbursement mandate applies to “multi-step fraud,” where scams involve multiple payments made to different accounts. It does not cover civil disputes or instances where the customer has acted fraudulently or shown gross negligence. The maximum reimbursement amount is set at £85,000, and no minimum limit exists for victims seeking reimbursement.

While this mandatory reimbursement rule provides enhanced protection for consumers, it also raises concerns regarding a potential uptick in fraud. Criminals may exploit the reimbursement framework by falsely claiming to be victims of APP scams. This highlights the urgent need for robust fraud detection and prevention measures to mitigate the risk of first-party fraud.

This compulsory reimbursement policy could also inadvertently affect consumer behavior and fraud patterns. Some consumers may become less vigilant in protecting themselves against APP fraud, believing that reimbursement will safeguard them in case of a scam. As a result, this mindset could lead to an increase in APP fraud incidents.

Data Sharing and Collaboration

Regions encourage data sharing and collaboration between financial institutions to enhance fraud detection and prevention. This includes initiatives such as:

• Confirmation of Payee (CoP): CoP helps verify the identity of payees and alert users to potential mismatches between account names and numbers. This can help prevent APP scams where fraudsters provide incorrect or misleading payee information.
• Information Sharing Initiatives: Regulators encourage PSPs to share information about fraudulent activities and suspicious accounts. This can help identify patterns and trends in APP fraud and enable faster responses to emerging threats.

Enhanced Fraud Prevention Measures

Regulators are also promoting the adoption of enhanced fraud prevention measures by PSPs. This includes:

• Delaying Payment Transactions: PSPs can delay processing payment transactions if they have reasonable grounds to suspect fraud or dishonesty. This provides time for further investigation and verification, potentially preventing fraudulent transactions from being completed. PSPs have up to four business days to make further inquiries, including contacting the customer or other relevant third parties.
• Enhanced Payment Statuses: Regulators encourage the adoption of updated payment statuses and error codes, which provide more detailed information about transaction status and potential fraud risks.

Consumer Education and Awareness

Authorities emphasize consumer education and awareness initiatives to empower individuals to protect themselves from APP fraud. These initiatives include providing information on common scams, warning signs, and prevention tips through various channels, such as websites, social media, and public awareness campaigns.

Examples of consumer education and awareness initiatives include:

• Public Awareness Campaigns: Governments and organizations are launching public awareness campaigns to educate consumers about APP fraud risks and prevention strategies.
• Online Resources and Educational Materials: Financial institutions and consumer protection agencies provide online resources, such as articles, videos, and quizzes, to educate consumers about APP fraud.
• Security Alerts and Notifications: Banks and payment providers send security alerts and notifications to customers to warn them about potential scams and provide timely information about fraud prevention.
• Collaboration with Community Organizations: Financial institutions partner with community organizations to reach vulnerable populations and provide targeted education on APP fraud prevention.
• DigiKavach Program in India: Google has launched the DigiKavach program in India to study scamming methods and develop and implement new countermeasures with partners. This program aims to address financial fraud and protect consumers from scams.

Technology and Innovation

Regulators are advocating for technology and innovation to improve fraud prevention measures. This involves supporting the integration of advanced analytics, artificial intelligence, and machine learning to identify and stop fraudulent transactions in real-time.

International Cooperation

Due to the worldwide nature of APP fraud, it is essential to have international collaboration to effectively tackle this crime. Regulators and law enforcement agencies are joining forces to exchange information, locate offenders, and retrieve misappropriated funds borders.

Technology’s Role in Fraud Investigations

Technology plays a crucial role in fraud investigations, helping to detect, prevent, and investigate fraudulent activities. This includes the use of:

• Data analysis tools: These tools help identify patterns and anomalies indicative of fraud, such as unusual transaction amounts, suspicious beneficiary information, or deviations from typical customer behavior.
• Artificial intelligence (AI) and machine learning (ML): AI and ML algorithms can detect complex fraud schemes by analyzing vast amounts of data and identifying subtle patterns that may not be apparent to human investigators.
• Digital forensics: Digital forensics is crucial in gathering and preserving electronic evidence related to fraud, such as emails, transaction logs, and device data. This evidence can be used to track down criminals and build a prosecution case.

How Can Group-IB Help?

This article has explored how APP fraud thrives on human trust, real-time payment rails, and a general lack of public awareness. We broke down the tactics like social engineering, impersonation, emotional manipulation and explained why stopping these scams is more complex than flagging unauthorized logins.

At Group-IB, we work closely with international law enforcement agencies, including Interpol and Europol, to share real-time threat intelligence, assist in investigations, and disrupt criminal infrastructure.

Recently, our teams supported two major operations:

• Operation Synergia 2: Targeting cyber criminals involved in BEC and financial scams.
• Operation Contender: Focused on actors selling stolen data across dark web marketplaces.

Beyond tactical support, we’re investing in long-term structural solutions. Group-IB co-launched the Global Anti-Fraud Network and the Fraud Intelligence Matrix, initiatives built to:

• Strengthen cross-border collaboration
• Facilitate actionable intelligence sharing
• Build real-world defenses against attacks like APP fraud

APP fraud isn’t going away just because we’re getting smarter. It’ll stop when defenders are better connected, when users are better informed, and when the systems that move money also know how to block abuse.

Group-IB is committed to making that happen, day by day, breach by breach, network by network. Get in touch with our experts today.