Fraud Dictionary
/
Authorized Push Payment (APP) Fraud

Authorized Push Payment (APP) Fraud

What is Authorized Push Payment (APP) Fraud?

Authorized Push Paymevnt (APP) Fraud is a type of financial scam that occurs when an individual or business is tricked into making a payment to a fraudulent account. This type of fraud can result in significant financial losses for victims.

APP Fraud can occur through various means, including impersonation scams, invoice redirect scams, and business email compromise scams. In this blog post, we will discuss the different types of APP Fraud, how to protect yourself from it, and what to do if you become a victim.

What are the different types of APP Fraud?

  • Impersonation scams: Impersonation scams occur when a fraudster poses as a legitimate individual or organization and requests a payment. This type of scam can be particularly effective if the fraudster is able to convincingly impersonate a trusted individual or organization.
  • Invoice redirect scams: Invoice redirect scams involve altering the payment details on an invoice so that payments are redirected to a fraudulent account. This type of scam can be difficult to detect and can result in significant financial losses for victims.
  • Business email compromise scams: Business email compromise scams occur when a fraudster hacks into the email account of an individual or business and requests payment under false pretenses. This type of scam can be particularly effective if the fraudster is able to convincingly impersonate a trusted individual or organization.

These are just a few examples of the types of APP Fraud that can occur. It is important to be aware of these scams and to take precautions to protect yourself from them.

How to protect yourself from APP Fraud

  • Verify the authenticity of requests for payment: One of the best ways to protect yourself from APP Fraud is to verify the authenticity of any requests for payment. This can include checking with the individual or organization making the request to confirm that it is legitimate.
  • Use secure payment methods: To protect your financial information, it is important to use secure payment methods when making payments. Options like PayPal provide an extra layer of security and can help prevent fraud.
  • Implement strong passwords and two-factor authentication: To protect against unauthorized access to your accounts, it is important to implement strong passwords and use two-factor authentication whenever possible. This can help prevent fraudsters from accessing your accounts and requesting unauthorized payments.
  • Educate employees on APP Fraud prevention: If you are a business owner, it is important to educate your employees on APP Fraud prevention. This can include providing training on how to identify and report suspicious activity, as well as implementing policies and procedures to prevent fraudulent payments.

By taking these precautions, you can help protect yourself and your business from APP Fraud.

What to do if you're a victim of APP Fraud

  • Contact your bank or financial institution immediately: If you suspect that you are the victim of APP Fraud, the first step you should take is to contact your bank or financial institution. They may be able to freeze your accounts and help you recover any lost funds.
  • Report the fraud to the appropriate authorities: Depending on the severity of the fraud, you may want to consider reporting the issue to the appropriate authorities. This can include local law enforcement, the FBI's Internet Crime Complaint Center, or the Federal Trade Commission (FTC).
  • Consider hiring a lawyer: If the fraud is particularly serious or complex, you may want to consider hiring a lawyer to help you navigate the legal process and protect your rights.

By taking these steps, you can help protect yourself and your business from further financial losses and seek justice for any losses you may have suffered.

The last word

APP Fraud is a serious issue that can result in significant financial losses for individuals and businesses. By taking precautions and being aware of the different types of APP Fraud, you can protect yourself and your business from these scams.

If you do become a victim of APP Fraud, it is important to act quickly and take the appropriate steps to seek help and get justice. This can include contacting your bank or financial institution, reporting the fraud to the appropriate authorities, and considering hiring a lawyer.

By taking these steps, you can help protect yourself and your business from further financial losses and hold the perpetrators accountable for their actions.

Ready to protect your business?

Connect your ecommerce store free, in just a few clicks.
© Copyright Spotrisk 2023