APP fraud is authorised push payment fraud: a scam that tricks a customer into sending money to an account a criminal controls, often by posing as a bank or someone the customer trusts. The customer authorises the payment themselves, which is what separates APP fraud from unauthorised card fraud, where a transaction goes through without the customer's knowledge.

The term is UK-specific and covers scams run over Faster Payments and CHAPS, including impersonation, invoice fraud, and romance scams. It is not a card dispute, and it is not the fraud itself so much as the payment rail the fraud exploits. Since October 2024, most UK victims qualify for mandatory reimbursement under the Payment Systems Regulator's rules, a separate mechanism covered under PSR reimbursement.

Frequently asked questions

What's the difference between APP fraud and card fraud?

APP fraud is a payment the customer authorised themselves, even though a scammer manipulated them into it. Card fraud is unauthorised: someone else uses the card without the customer's knowledge. Banks investigate the two through different teams, because the customer's own intent to pay is what separates them.

Do banks have to refund APP fraud victims?

Most do, under the PSR's mandatory reimbursement rules for Faster Payments and CHAPS transfers. The sending and receiving banks split the cost, and a small excess and conduct standards can still affect the outcome. See PSR reimbursement for how the mechanism works.

What are the most common types of APP fraud?

Impersonation scams lead the category: a criminal poses as a bank or a government body and convinces the customer to move money to a "safe account". Purchase scams and invoice fraud, where a criminal intercepts a genuine invoice and swaps the payee details, follow close behind.