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Push Payment Scams Are On The Rise–This Is What You Can Do If You Fall Victim To Them

People work hard to earn their money, so it’s never a good feeling when they get tricked into losing some of it. Unfortunately, there are many individuals out there whose job it is to scam others for cash. One of their tricks, which has been becoming more common in recent years, is ‘Authorised Push Payment’ (APP).

What APP Fraud Is

A common con is calling a person posing as a bank representative informing the potential victim that ‘fraud’ has been detected in their account that requires them to send money.

APP is a fraud technique wherein individuals are tricked into making payments after scammers fake a phone call pretending to be anyone from a bank representative, a solicitor or even a builder. The goal is to get unsuspecting account holders to authorize payments to the fraudster. The fact that something nefarious might have happened is usually only discovered when the theft has been done. Worse, fraudsters have gotten more creative with their modus operandi and have even begun using seemingly legitimate information to further make their con more believable to the victims. According to sources, these people have found a way to make calls from a bank’s number and even use customer information that only banks may have.

What To Do

Note that the code would only apply to transfers made between bank accounts in the UK.

Fortunately, there are many things victims of fraud can do when they are faced with APP. For one, some banks would allow their clients a refund when an unauthorized payment has been made. However, this isn’t the case for everyone. This is the issue addressed by a voluntary code just signed by some banks in the United Kingdom to guarantee their clients solutions during these types of situations. Some of these banking institutions are Starling Bank, HSBC, Metro Bank, RBS and Santander.

People are recommended to immediately report any instance of APP fraud to their bank. After that, the bank would decide whether a person is eligible to get their money back based on a set of guidelines. Those whose requests for reimbursement got rejected may then challenge the decision through the Financial Ombudsman Service (FSO).

Avoiding Scams

Remember that a person shouldn’t be immediately trusted just because they know personal details about you.

To avoid falling into scams like the APP are advised to be more wary of suspicious people who contact them. People are reminded that banks and other trusted financial institutions won’t resort to calling individuals asking them for their password or PIN. When faced with this situation, people are advised to trust their guts and call the company or bank directly to confirm that any request for personal information or money transfer is indeed legitimate. Practicing caution while online is another way to protect oneself from fraudsters. Refrain from automatically clicking any links from unexpected emails.

Read on to find out how to recognize a push payment scam and protect yourself from it.

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