How to Avoid Authorized Push Payment (APP) Scams



The digital age has brought about a multitude of conveniences, one of the most prominent being instant, real-time payments. However, as with most technological advancements, this convenience is not without its drawbacks. The rise of authorized push payment (APP) scams has become a significant concern worldwide.

This article will explore the risks associated with APP scams and provide valuable prevention tips to help you safeguard your finances against these fraudulent activities.



Key Takeaways:

• An Authorized push payment scam is a type of financial fraud committed to manipulate individuals, investors, businesses or traders into transferring money from their accounts at the request of a scammer.

• Examples of APP fraud include impersonating a legitimate organization, deceiving victims with false invoices or manipulating individuals into believing they’re assisting in a financial transaction.

• Through consumer education, technological advancements and layered security measures, you can easily avoid becoming the victim of an APP scam.

What Is an Authorized Push Payment Scam (APP)?

An authorized push payment (APP) scam is a fraudulent scheme whereby a scammer manipulates a person or business into transferring money to an account controlled by the scammer. This scam has become a prevalent form of online fraud, targeting individuals who then transfer money directly from their bank accounts to another account at the request of a scammer. 

The Evolution of APP Scams

APP scams have been around for many years, but the advent of real-time payment systems worldwide has made them increasingly attractive to criminals. Systems such as Faster Payments in the UK, PIX in Brazil, the New Payments Platform (NPP) in Australia and the recent launch of FedNow® Service in the USA have inadvertently contributed to making real-time payment fraud a reality.



In the first half of 2023, APP scams accounted for reported losses of more than $185 million, a 44% increase compared to the same period in the previous year. Only a fraction of funds from these losses were returned to victims, underscoring the severity of this growing problem.

Anyone Can Be a Victim

APP fraud affects individuals and businesses alike. As more consumers and businesses adopt simple ways to send money in real time, the pool of potential victims increases. While crypto boosts convenience in transferring and receiving money, fraudsters can exploit this vulnerability to cheat users into different payment schemes.

Examples of APP Scams

Invoice and Mandate Scams

Invoice and mandate schemes typically entail criminals manipulating genuine payment requests and tricking victims into rerouting the payments to the scammers’ personal accounts. This type of scam is often directed at people who settle invoices or businesses working with conveyancing attorneys, construction workers and others. Fraudsters may impersonate these professionals and assert that there’s been a change in bank account information. To counteract this type of fraud, it’s crucial to always confirm any modifications in payment details directly with the initial recipient using reliable contact data.

CEO Fraud

CEO fraud is a scam whereby a fraudster assumes the identity of a top-level executive (such as a CEO or CFO) within a company, and tricks individuals into processing immediate transactions to the scammer’s account. This kind of fraudulent activity’s predominant impact is on businesses. To deter acts of CEO fraud, it’s advisable to implement rigid payment approval processes within your company and motivate staff members to corroborate and document any irregular payment demands directly with the alleged sender, using reliable communication methods.

Impersonation Scams — Police or Organizations

In this fraudulent scheme, lawbreakers usually pose as representatives from banks or exchanges, employees or government authorities. They trick individuals into transferring funds to accounts under their control by alleging penalties, outstanding taxes or refunds, or claiming to provide help in “resolving your account problems” remotely. To keep from falling prey to these impersonation frauds, exercise prudence when contacted by people professing to be from authorized institutions. Authenticate their identity independently via formal routes prior to committing any payments, or permitting access to your computer system.

Impersonation Scams — Family or Friends

Scammers frequently pose as relatives or friends and concoct tales to coerce targets into executing bank transactions. These appeals usually arrive via social networking sites, or via SMS or quick messaging services. To avoid these deceptions, always use caution when dealing with a monetary request from anyone claiming to be an individual who is familiar with you. Confirm their authenticity through other channels, for instance a direct call or face-to-face meeting, prior to engaging in any financial operations.

Purchase Scams

Scams involving advance payments for undelivered products or services are common, particularly on digital platforms such as social media, auction sites or peer-to-peer trading platforms. To safeguard yourself from falling victim to such fraud, it’s crucial to be vigilant when making online transactions. Thoroughly investigating the credibility of the seller, scrutinizing customer feedback and considering employing secure payment options can provide additional layers of protection for buyers.



Learn more: How to Avoid P2P Scams

Investment Scams

Fraudsters employ bogus investment schemes to persuade people into putting their money into phantom funds or counterfeit investments, luring them with the prospect of significant profits. These deceptive ploys can encompass several types of investments, including gold, real estate, cryptocurrencies, land banking or even wine. In order to safeguard against such investment frauds, it’s advisable to carry out meticulous investigations on potential investment avenues, solicit counsel from reliable financial consultants and maintain a healthy level of suspicion toward offers that appear overly attractive.

Romance Scams

Swindlers often set up counterfeit profiles on social networking or matchmaking platforms and spend a great deal of time cultivating relationships with unsuspecting individuals. Once they’ve successfully built a bond of trust, these con artists invent personal issues and seek financial help to address them. In order to protect yourself from these deceptive love or friendship scams, exercise prudence when interacting online. Refrain from transferring money, investment plans, property or even cryptocurrencies to anyone you haven't physically met, and promptly inform the website administrators of any dubious activities.

Prevention Tips to Avoid APP Scams

The Role of Technology in Preventing APP Scams

Modern technology offers promising possibilities for preventing APP scams. Banks and crypto exchanges are now leveraging sophisticated fraud prevention software, incorporating machine learning and contextual data to identify and flag suspicious transactions. Artificial intelligence (AI) technologies can process data points faster and enhance fraud detection capabilities, mitigating identity risk and safeguarding customer accounts.



Learn more: How to Avoid Crypto Scams

Consumer Awareness and Education

Clear communication with customers is crucial in the fight against APP scams. Customers should be made aware of the risks and signs of APP scams and learn how to protect themselves. Businesses can play a crucial role in educating their customers and promoting awareness around this increasingly common type of fraud.



Learn more: Bybit’s pledge to compliance and commitment to regulation

Verify Requested Payments 

Always independently verify any payment requests you receive — especially if they’re unexpected or seem out of the ordinary. Contact the individual or company directly using trusted contact information to confirm the legitimacy of the payment request.

Be Cautious With Personal Information

Never disclose sensitive personal or financial information — such as your bank account details, birthdate, Social Security number or passwords — to unknown or unverified individuals or organizations. Scammers may use this information to perpetrate APP scams or other forms of identity theft.



Pay close attention to email addresses, phone numbers or website URLs provided in payment requests. Scammers may use slightly altered or misleading contact details to create a sense of authenticity. In addition, independently verify all contact information before proceeding with any transactions.

Implement Multi-Factor Authentication (MFA)

Enable MFA for your online banking and payment accounts whenever possible. This additional layer of security requires multiple forms of verification, such as passwords, codes or biometrics, making it more difficult for scammers to access your accounts. For example, Bybit protects users’ funds by preventing unauthorized online access through a combination of advanced multi-signature Trusted Execution Environment (TEE) and Threshold Signature Schemes (TSS). Users are also advised to turn on two-factor authentication (2FA) to secure their accounts from unauthorized access.

Trust Your Instincts

If something feels off or too good to be true, trust your instincts. Take a step back and carefully evaluate the situation before proceeding with any financial transactions. If in doubt, consult with a trusted friend, family member or financial advisor for guidance. Likewise, if you suspect a friend or relative is being scammed, take action to intervene before the scammer has insinuated themselves into your friend’s or loved one’s finances through ill-gotten methods.

The Bottom Line

While the advent of real-time payment systems has brought about a multitude of conveniences, it’s also opened up new avenues for fraudsters to exploit. APP scams pose a significant threat to both individuals and businesses. However, through a combination of consumer education, technological advancements and layered security measures, we can fight back against APP scams and protect our financial systems.



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