What is an APP scam?

  • Last updated on October 15, 2024 at 9:28 AM

An APP scam occurs when someone deceives you into sending them money. You willingly authorise the payments, believing that the money is being sent to a legitimate recipient for a legitimate purpose. In reality, the account you send money to is controlled by a fraudster, and/or the purpose of the payment isn’t what you thought. 

APP fraud can come in several forms, such as investment scams, loan scams, romance scams, purchase scams, fee scams and invoice scams. The scammer will typically impersonate:

  • A known service provider, like your bank, phone provider, internet service provider or utilities provider

  • An investment advisor

  • Law enforcement or government agencies, who may claim there is a legal issue or fine that requires immediate payment

  • A potential romantic partner

  • A family member

They often use urgency as a tactic to create panic and pressure you into making a payment before you have a chance to think it through. By convincing you that there’s a critical or time-sensitive issue, they make it seem like you need to act quickly, leaving little room to verify the authenticity of their claims. They can also use official-looking emails, texts, or phone calls to make you believe they are who they say they are.

How is an APP scam different from other types of fraud?

APP scams differ from other types of payment fraud, as in this instance you’ve authorised the payments yourself. 

The success of an APP scam relies on you being manipulated and deceived into sending the money yourself. With other fraud, such as unauthorised transactions, the transactions occur without your knowledge or involvement, and tend to happen through misusing your sensitive information (such as your login credentials).