Types of APP Scams: The Wide Spectrum of Authorised Push Payment Fraud

Authorised Push Payment (APP) scams continue to evolve in sophistication and variety. Understanding how these scams work is your first line of defence against becoming a victim. This non-exhaustive guide examines the many faces of APP fraud, with real examples of how scammers operate.

Cryptocurrency Investment Scams

Cryptocurrency scams have exploded in recent years, becoming one of the most financially devastating forms of APP fraud. These scams leverage the complexity of digital currencies and the promise of astronomical returns to lure victims.

Fake Trading Platform Scams

How it works: Scammers create sophisticated fake trading websites or apps that mimic legitimate cryptocurrency exchanges. These platforms often feature:

• Professional-looking interfaces with live price charts
• Fake testimonials and trading histories showing impressive returns
• Customer service chat functions operated by the scammers

The deception unfolds:

1. Victims are targeted through social media ads, dating apps, or direct messages
2. Initial investments show immediate “profits” on the platform
3. Victims are encouraged to invest more substantial sums
4. When attempting to withdraw funds, victims encounter sudden “problems”

Common withdrawal barriers:

• “You need to pay a withdrawal fee” or “exit tax”
• “Your account is locked for security verification”
• “You must invest more to reach the minimum withdrawal threshold”
• “You need to pay for anti-money laundering clearance”

Real example: John saw a Facebook ad about a crypto platform promising 15% weekly returns. After investing £2,000, his account showed growth to £3,500 in just two weeks. When he tried to withdraw, he was told he needed to pay a £500 “regulatory fee.” After paying this, another fee appeared. John lost £2,500 before realising it was a scam.

Pig Butchering Scams

A particularly cruel variant of crypto scams named after the farming technique of “fattening up” before slaughter.

How it works: Scammers build relationships over weeks or months before introducing investment opportunities.

1. Connections often begin on dating apps or social media
2. Scammers establish trust through regular, friendly conversation
3. They casually mention their success with cryptocurrency investments
4. They offer to “help” the victim start investing through their “trusted platform”

The manipulation deepens:

• Victims see their supposed investments grow dramatically
• They’re encouraged to invest more and more (“fattening”)
• When they’ve invested a substantial amount, the scammer and the funds disappear (“slaughter”)

Real example: Sarah matched with “Michael” on a dating app. For two months, they chatted daily about their lives and interests. Michael occasionally mentioned his crypto investments. When Sarah expressed interest, he helped her set up an account on what seemed like a legitimate exchange. Over four months, Sarah invested her life savings of £75,000. When she tried to withdraw, the website disappeared, as did Michael.

Celebrity Endorsement Crypto Scams

How it works: Fraudsters create fake articles, videos, or social media posts featuring well-known celebrities supposedly endorsing crypto investments.

• Fake news articles mimic legitimate financial publications
• Deepfake videos show celebrities discussing investment opportunities
• Ads claim figures like Elon Musk or Richard Branson are backing a specific platform

Victims clicking these links are directed to sophisticated investment platforms designed to steal their money.

Real example: David saw what appeared to be a BBC news article about Rishi Sunak promoting a new Bitcoin investment platform that was helping ordinary Britons build wealth. The article linked to a professional-looking investment site. David invested £5,000 and was initially shown impressive returns, but when he tried to withdraw his supposed profits, the company demanded additional “verification payments.”

Crypto Recovery Scams

Perhaps the cruelest twist: scammers target those who have already lost money to crypto scams.

How it works:

1. Scammers identify previous victims through data breaches or public complaints
2. They pose as recovery experts, law firms, or regulatory authorities
3. They promise to recover lost funds for an upfront fee
4. After collecting the fee, they disappear or demand additional payments

Real example: After losing £10,000 to a crypto scam, Emma received an email from “Crypto Recovery Solutions” claiming they specialised in retrieving funds from fraudulent exchanges. They showed her “evidence” they had found her money and needed £2,000 to “initiate recovery proceedings.” This was simply another scam, compounding her losses.

Romance Scams

Romance scams are among the most emotionally devastating forms of fraud, as victims suffer both financial and emotional abuse.

Traditional Romance Scams

How it works: Fraudsters create fake profiles on dating apps or social media and develop intense emotional connections with victims before asking for money.

Common scenarios include:

• Claiming to be working overseas (military, oil rig worker, international business)
• Building the relationship over weeks or months before mentioning financial issues
• Creating emergencies that require immediate financial help (medical issues, legal problems, robbery)
• Making plans to meet that always fall through at the last minute (often with additional costs)

Psychological tactics:

• Love bombing (excessive attention and affection)
• Creating a sense of a shared future together
• Playing on the victim’s empathy and desire to help
• Isolating victims from friends and family who might question the relationship

Real example: Jane, a widow, connected with “Harry” on Facebook, who claimed to be a British engineer working in Dubai. After three months of daily calls and messages, Harry said his equipment had been damaged and he needed £5,000 to repair it or he’d lose his contract. Jane sent the money. Next came a medical emergency, then customs fees to ship valuable equipment to the UK. Jane lost over £30,000 before discovering Harry’s profile picture belonged to a real engineer whose identity had been stolen.

Romance-Investment Hybrid Scams

A growing trend combines romance scams with investment fraud, particularly cryptocurrency.

How it works:

1. The scammer establishes a romantic relationship
2. Instead of asking directly for money, they mention their successful investments
3. They offer to help the victim invest and achieve similar success
4. They direct victims to controlled platforms where money is stolen

Real example: Robert met “Sophia” on a dating app. After weeks of romantic messages, Sophia mentioned her success with crypto trading. She didn’t ask for money directly but offered to teach Robert how to invest. She guided him to a “special platform” with exclusive access. Robert invested £25,000 over two months, seeing apparent growth to £40,000 on the platform. When he tried to withdraw, the site demanded additional fees, and Sophia became unreachable.

Impersonation Scams

These scams involve fraudsters pretending to be trusted organisations or individuals.

Bank and Financial Institution Impersonation

How it works: Scammers pose as bank security teams, often with convincing details about your account.

Tactics include:

• Spoofing the bank’s phone number so it appears legitimate on caller ID
• Referencing recent genuine transactions to establish credibility
• Creating urgency about fraudulent activity on your account
• Directing you to move money to a “safe account” to protect it

Real example: James received a call from “Barclays Security Team” from a number matching Barclays’ legitimate contact number. The caller knew James’ address and the last four transactions on his account. They claimed suspicious activity had been detected and his money needed transferring to a secure account while they investigated. James transferred £18,500, only to discover later this “safe account” belonged to the scammers.

HMRC and Government Impersonation

How it works: Scammers pose as tax authorities or government agencies, threatening legal action unless immediate payment is made.

Common approaches:

• Claims of tax underpayment with threats of arrest or legal action
• Offers of tax rebates requiring personal and payment details
• Messages about benefits or pension issues requiring verification payments

Real example: Angela received an official-looking email claiming to be from HMRC, stating she was under investigation for tax fraud and faced immediate arrest unless she paid £3,200 in “settlement fees.” The email included official HMRC logos and a case reference number. Frightened, Angela made the payment before checking with HMRC directly.

Police and Legal Authority Impersonation

How it works: Fraudsters pose as police officers or legal representatives, creating scenarios that require urgent financial action.

Tactics include:

• Claims your bank account has been compromised in a major fraud investigation
• Requests to transfer money to “police-monitored” accounts for safekeeping
• Demands for “bail money” for a relative allegedly arrested

Real example: Peter received a call from “Detective Inspector Williams” claiming his bank account was being used by money launderers. The “officer” instructed Peter to transfer his savings to a special police-monitored account to protect it and help catch the criminals. Peter lost £45,000 before realising it was a scam.

Purchase and Marketplace Scams

These scams exploit our desire for good deals on products and services.

High-Value Purchase Scams

How it works: Scammers advertise high-value items at tempting prices, collect payment, but never deliver the goods.

Common targets:

• Vehicles (cars, motorcycles, boats)
• Property rentals or timeshares
• Luxury goods or electronics
• Holiday packages

Tactics:

• Prices just low enough to be tempting but not suspicious
• Excuses for why items must be sold quickly (divorce, relocation, debt)
• Manufactured competition (“other buyers are interested”)
• Requests for deposits or full payment via bank transfer

Real example: Mark found a Range Rover advertised online for £15,000 below market value. The seller explained they were emigrating and needed a quick sale. After several convincing exchanges and being sent what appeared to be legitimate documentation, Mark transferred the £32,000 purchase price. The seller disappeared, the car was never delivered, and the documentation proved to be forged.

Rental and Accommodation Scams

How it works: Fraudsters advertise non-existent or unavailable properties for rent, collecting hefty deposits or advance payments.

Warning signs:

• Unusually low rental prices for desirable areas
• Unable to view the property in person (“owner is abroad”)
• Pressure to transfer deposit money quickly to “secure the property”
• Communication only via email or messaging apps

Real example: Emily found a London flat advertised at a reasonable price. The “landlord” explained he was working overseas and couldn’t show her the property in person but shared professional photos and a detailed video tour. Emily paid a £2,000 deposit plus £3,000 for the first month’s rent. Upon arrival at the address, she discovered the flat belonged to someone else who knew nothing about the rental.

Invoice and Payment Diversion Fraud

These sophisticated scams target individuals and businesses making legitimate large payments.

Property Purchase Fraud

How it works: Scammers intercept communications between home buyers and solicitors, then send fake payment instructions.

The process:

1. Fraudsters hack email accounts of estate agents or solicitors (or create very similar email addresses)
2. They monitor communications to identify upcoming property purchases
3. Just before completion, they send emails with changed bank details
4. Buyers transfer their house deposit or full payment to the fraudster

Real example: Claire was purchasing her first home and received an email seemingly from her solicitor stating the firm had changed banks and providing new account details for her £45,000 deposit. The email looked identical to previous communications. Claire made the transfer, only discovering it was fraudulent when her actual solicitor called to ask when she would be sending the deposit.

Business Invoice Fraud

How it works: Scammers pose as legitimate suppliers or service providers and send altered invoices with changed payment details.

Tactics:

• Creating emails that closely mimic legitimate business communications
• Slightly altering email domains (e.g., from company.co.uk to company-co.uk)
• Claiming banking details have changed due to audits or security upgrades
• Maintaining the legitimate invoice format but changing only the bank details

Real example: A small business received what appeared to be an invoice from their regular supplier for £12,000 of materials. The email explained the company had changed banks and provided new payment details. The business paid the invoice, only discovering the fraud when the real supplier called to chase payment.

Employment and Opportunity Scams

These scams prey on people’s desires to earn money or find employment.

Job Opportunity Scams

How it works: Fraudsters advertise lucrative jobs but require payments for training, equipment, or background checks.

Common scenarios:

• Remote working opportunities with upfront costs for equipment
• Jobs requiring purchase of training materials or certification
• Positions requiring payment for background checks or administrative fees
• Jobs involving processing payments through personal accounts (money muling)

Real example: Unemployed for three months, Tom was delighted to be offered a remote customer service position. Before starting, he was asked to pay £350 for security clearance and £700 for specialised equipment. After making these payments, the company became uncontactable and the job never materialised.

Money Mule Recruitment

How it works: Victims are recruited (sometimes unknowingly) to transfer illegally obtained money, often disguised as legitimate employment.

Warning signs:

• Jobs with minimal requirements but involving handling money
• Unusually high compensation for simple tasks
• Requests to use personal bank accounts for business transactions
• Employers who never meet in person or verify employment details

Real example: Aisha was offered a “financial processing” job working from home. Her role involved receiving payments into her personal account and transferring them to other accounts after deducting her 5% commission. Unknown to her, she was laundering the proceeds of fraud. Her bank account was frozen, and she faced a police investigation.

Investment and Financial Opportunity Scams

Beyond cryptocurrency, many other investment scams persist.

Get-Rich-Quick and Wealth Generator Scams

How it works: Fraudsters promote systems, courses, or investment opportunities promising extraordinary returns with minimal effort or risk.

Common approaches:

• Exclusive investment opportunities not available to the general public
• Trading systems or algorithms with guaranteed returns
• Online courses revealing “secrets” to wealth generation
• Multi-level marketing schemes disguised as business opportunities

Real example: Richard saw a social media ad featuring a well-known entrepreneur (later found to be using their image without permission) promoting a “wealth system” that could generate £10,000 monthly with just two hours of work per week. After paying £2,000 for the program, he received basic, generic information worth a fraction of what he paid.

Pension and Retirement Fund Scams

How it works: Fraudsters target people’s pension pots, offering “better returns” or early access to funds.

Tactics:

• Cold calls about pension reviews or investment opportunities
• Claims of “loopholes” allowing early pension access without tax penalties
• Promises of guaranteed high returns in overseas or exotic investments
• Use of terms like “pension liberation” or “pension loan”

Real example: Roger, 56, received a call offering a free pension review. The caller identified concerning “fees” in Roger’s current pension and offered to transfer it to a better-performing fund. After transferring his £120,000 pension pot to the recommended scheme, Roger discovered it had been invested in high-risk, unregulated investments that lost most of their value.

Emerging Scams and Trends

Fraudsters continually evolve their tactics. Here are some emerging threats:

AI-Generated Voice Scams

How it works: Using AI technology, scammers can now clone voices with just a small audio sample. They use these to impersonate family members or executives in distress.

The scenario:

1. Scammers gather voice samples from social media posts or public speaking
2. They create convincing voice clones using AI technology
3. They call family members or employees claiming emergency situations
4. They request immediate financial help via bank transfer

Real example: Susan received a frantic call from what sounded exactly like her son claiming he had been in an accident abroad and needed £4,000 immediately for medical treatment. The voice was so convincing that she transferred the money, only to call her son on his regular number afterwards and find him safely at home.

Metaverse and Virtual Property Scams

How it works: As virtual worlds gain popularity, scammers sell non-existent or worthless virtual land and assets.

Approaches:

• Promoting “exclusive” virtual land in upcoming metaverse projects
• Selling counterfeit NFTs or virtual items
• Creating fake metaverse investment opportunities
• Offering early access to metaverse platforms that don’t exist

Real example: Michael invested £15,000 in what was promoted as “prime virtual real estate” in an upcoming major metaverse platform. He received digital certificates for his purchase, but the platform never launched, and the company disappeared with investors’ money.

Protecting Yourself From APP Scams

While understanding these scams is crucial, knowing how to protect yourself is equally important:

1. Take your time: Legitimate organisations won’t pressure you to act immediately
2. Verify independently: Contact organisations directly using numbers from official websites
3. Be suspicious of unexpected contact: Even if caller ID or email addresses look legitimate
4. Question unusual payment requests: Especially changes to bank details or requests for bank transfers
5. Discuss with others: Scammers often isolate victims; talking to trusted friends or family can provide perspective
6. Research thoroughly: Before investing or making large purchases, conduct extensive independent research
7. Use secure payment methods: Credit cards and payment platforms offer better protection than bank transfers

If You’ve Been Scammed

If you believe you’ve fallen victim to an APP scam:

1. Contact your bank immediately: The faster you report it, the better chance of recovery
2. Report to Action Fraud: The UK’s national fraud reporting centre
3. Preserve evidence: Save all communications, screenshots, and payment details
4. Seek expert help: APP Claims specialises in helping victims navigate the complex reimbursement process

Remember, new reimbursement rules effective October 7, 2024, have strengthened victims’ rights to compensation in many cases.

How APP Claims Can Help

At APP Claims, we understand the devastating impact of APP fraud. Our experts:

• Assess your case for free
• Handle all communications with banks and payment providers
• Build compelling evidence packages
• Fight for your full reimbursement
• Escalate to the Financial Ombudsman Service when necessary

All on a No Win, No Fee basis.

Don’t let scammers win twice by giving up on your right to reimbursement. Contact APP Claims today to start your recovery journey.

The information in this guide is regularly updated as new scam types emerge and evolve. Last updated: March 2025.