Authorized Push Payment (APP) fraud is a rapidly growing financial crime where a victim is manipulated, usually through social engineering, phishing, or impersonation, into willingly and actively transferring money from their own bank account into an account controlled by a scammer.
Why "Authorized" Makes It Dangerous
Unlike credit card fraud—where a hacker pulls money out of an account without permission—APP fraud involves a "push" payment. The victim logs into their banking app and authorizes the transfer themselves. Because the bank’s systems see the legitimate account holder initiating the transaction, standard fraud filters usually allow the payment to go through instantly.
The Scammer's Tactics
Scammers frequently pose as legitimate figures, such as a CEO demanding an urgent wire transfer (Business Email Compromise), a romantic interest needing emergency funds, or a bank employee claiming the victim's account is compromised and the funds must be moved to a "safe account." Because the transfers are instantaneous and irrevocable, recovering the funds is incredibly difficult.
