What Authorized Push Payment Fraud Looks Like

Authorized push payment (APP) fraud is when a scammer tricks you into sending money from your own bank account to an account they control — and your bank treats it as a legitimate transfer because you authorized it. The fraud is not in the transaction itself; it is in the deception that led you to approve it. Once the money leaves your account, recovery is difficult because you, not a criminal, initiated the payment.

The scammer does not steal your login credentials or intercept a wire. Instead, they impersonate someone you trust — your bank, your employer, a government agency, a landlord, a lawyer, a utility company — and convince you that sending money urgently is necessary. You log into your real bank account, enter the real recipient details the scammer provided, and push send. The bank sees an authorized transaction from a verified customer and processes it.

APP fraud accounts for billions of dollars in losses annually across the United States and United Kingdom. The losses fall on customers far more often than on banks, because the customer authorized the payment. Your bank may not be required to refund you, depending on your account agreement and the laws in your state.

Key Takeaways

  • APP fraud succeeds because the scammer impersonates someone with authority — your bank, employer, landlord, or government agency — and creates false urgency around a payment you believe is real.
  • The fraud happens before you send money, not during the transfer, so the best defense is recognizing the red flags in the initial contact.
  • Legitimate organizations never ask you to move money to a "safe account" or to send funds to a third party on their behalf.
  • If you have already sent money, contact your bank within hours and ask them to recall the payment; the window to reverse it is narrow.
  • Recovery after an APP fraud loss depends on your bank's fraud policy and your state's laws, and many banks are not required to refund you.

How Scammers Set Up the Deception

The scammer's goal is to make you believe a payment is urgent and legitimate before you have time to verify. They typically start by contacting you through a channel that feels official: a phone call claiming to be your bank's fraud department, an email that looks like it came from your employer's payroll system, a text message appearing to be from your utility company, or a letter that mimics government letterhead.

The message creates a false crisis. Your bank account has suspicious activity and needs to be secured immediately. Your employer is processing a bonus but needs you to confirm your banking details. A government agency is issuing a refund but the deadline is today. A landlord or property manager needs the rent sent to a new account right now because the old one was compromised. A lawyer handling an inheritance needs funds transferred urgently to cover fees.

The scammer then directs you to take action: log into your bank account (not through a link they provide, but on your own), and send money to an account number or person they specify. Because you initiated the transfer from your real account to a real bank account, your bank sees nothing wrong. The transaction is authorized, irreversible, and the money is gone within hours.

Red Flags That Appear Before You Send Money

Legitimate organizations rarely ask you to move money urgently or to send funds to a third party. If you receive a request that includes any of these elements, stop and verify before sending anything.

Pressure to act immediately. Phrases like "within the next hour," "before close of business today," or "do not delay" are designed to bypass your caution. Real banks, employers, and government agencies do not operate on artificial deadlines for routine transactions. If someone claims your account will be frozen or your refund will be lost unless you act now, that is a sign of fraud.

A request to move money to a "safe account" or to a third party. Your bank will never ask you to transfer your funds to another account for security reasons. Your employer will not ask you to send a bonus to someone else's bank account. A government agency will not ask you to wire money to a lawyer or accountant to process a refund. If the request involves moving money anywhere other than your own account or a vendor you initiated contact with, it is fraudulent.

Contact initiated by the other party, not by you. If you did not call your bank, your employer, or a government office, and they are now calling you asking for money, verify the call independently. Hang up, find the official phone number on your statement or the organization's website, and call them back. Scammers can spoof phone numbers to make their call appear to come from a legitimate source.

A request for banking details or account numbers. Your bank already has your account number. Your employer already has your banking details for direct deposit. A government agency will not ask for this information over the phone or email. If someone claiming to represent an organization you do business with is asking for account numbers, routing numbers, or login credentials, they are not who they say they are.

Instructions to keep the transaction secret. Scammers often tell you not to tell anyone about the transfer, not to mention it to your bank, or not to discuss it with family. Legitimate financial transactions do not require secrecy. If someone is telling you to hide a payment, that is a clear signal of fraud.

How to Verify Before You Send Money

The moment you receive a request for money — especially one that feels urgent — pause and verify independently. Do not use contact information from the message you received, because scammers can spoof emails, texts, and even phone numbers.

If someone claims to be from your bank, hang up and call the number on the back of your debit or credit card. If they claim to be from your employer, call your HR department directly using the number from your employee handbook or the company website. If they claim to be from a government agency, go to the official government website and find the contact number there. If they claim to be a lawyer or accountant, ask for their bar number or license number and verify it independently through your state's bar association or licensing board.

Tell the person you are calling: "I received a request for money claiming to be from your organization. Can you tell me if this is legitimate?" A real organization will be able to confirm or deny the request immediately. If they cannot, or if they tell you the request is fraudulent, you have your answer.

If the request involves a payment to a third party — a lawyer, accountant, or other vendor — contact that vendor directly using contact information you find independently. Do not use any contact details provided in the suspicious message.

What to Do If You Have Already Sent Money

If you have already authorized and sent a payment and now realize it was fraud, contact your bank immediately. Do not wait. Call the phone number on the back of your card or the number listed on your bank's official website. Tell them you sent money as the result of fraud and ask them to recall or reverse the payment.

Banks have a narrow window — often just a few hours — to recall a payment before it settles in the recipient's account. If the recipient's bank is in the United States, the payment may settle within one business day. If it is international, it may take longer, but the window is still limited. The faster you report it, the better your chances of recovery.

Your bank will ask you for details: the date and time of the transfer, the amount, the recipient's account number or name, and the bank or service where the money was sent. Have this information ready. Your bank will also ask you to file a fraud report and may ask you to provide evidence of the scam — the email, text message, or phone number that contacted you.

After you report it, ask your bank what their fraud policy covers. Some banks refund APP fraud losses automatically. Others refund only if you can prove you took reasonable steps to verify the request. Some do not refund at all, depending on your account agreement and your state's laws. Ask specifically: "Will you refund this loss, and if not, why not?" Get the answer in writing.

Your Rights and Recovery Options

Recovery after an APP fraud loss depends on your bank's fraud policy, your account agreement, and the laws in your state. There is no single federal rule that requires banks to refund APP fraud losses the way they do for unauthorized transactions (where someone else used your account without permission).

Some banks have voluntarily adopted the Confirmation of Payee (CoP) system, which adds a verification step when you send money to a new recipient. Your bank checks the recipient's name against the account holder's name at the receiving bank. If there is a mismatch, you are warned before the payment goes through. However, CoP is not universal, and many banks do not use it yet.

If your bank refuses to refund you, you can file a complaint with your state's banking regulator or with the Consumer Financial Protection Bureau (CFPB). You can also contact your state's attorney general's office. These agencies cannot force a refund, but they can investigate whether your bank violated state or federal law. If your bank is found to have failed in its duty to protect you from fraud, it may be required to refund losses or face penalties.

You can also report the fraud to the Federal Trade Commission (FTC) at reportfraud.ftc.gov. The FTC does not recover your money, but it tracks fraud patterns and shares information with law enforcement. If the scammer is caught, law enforcement may be able to recover funds from seized accounts, though this is rare.

How to Protect Yourself Going Forward

APP fraud prevention starts with skepticism about any unsolicited request for money. Treat every urgent payment request as potentially fraudulent until you have verified it independently.

Set up account alerts with your bank so you are notified immediately when large transfers leave your account. This will not stop the fraud, but it may let you catch it within the recall window. Some banks also offer transaction limits — you can set a maximum amount that can be transferred in a single day or require additional verification for transfers above a certain amount.

Use multi-factor authentication on your bank account and email. This makes it harder for a scammer to access your account even if they have your password. However, multi-factor authentication does not protect you from APP fraud, because you are the one authorizing the payment.

If you receive a call, email, or text claiming to be from your bank, employer, or government agency, always hang up or ignore the message and call back using a number you find independently. Never use contact information provided in the suspicious message. This single habit will stop most APP fraud attempts.

Frequently Asked Questions

Can my bank force the receiving bank to send the money back?

Your bank can request a recall, but the receiving bank is not required to honor it if the recipient has already withdrawn the funds or if the account has been closed. If the money is still in the recipient's account and has not been withdrawn, the receiving bank may be able to freeze it. The window for this is usually hours, not days.

What if the scammer used a fake name or a business name I did not recognize?

Report this to your bank and to the FTC immediately. Provide the account number or routing number where the money was sent. Your bank can contact the receiving bank and ask them to freeze the account pending investigation. Law enforcement may also be able to trace the account and identify the scammer, though recovery is not may provide.

Am I responsible for the loss if I should have known it was fraud?

It depends on your bank's fraud policy and your state's laws. Some banks argue that if you failed to take reasonable steps to verify the request — such as calling the organization back independently — you bear some or all of the loss. Others refund losses regardless. Ask your bank directly what their standard is before you need it.

Does my credit card offer better protection than my bank account?

Yes. Credit card transactions are covered by federal law (Regulation Z), which limits your liability for unauthorized charges to $50. However, APP fraud is not an unauthorized charge — you authorized it — so this protection may not apply. Debit cards and bank transfers offer less protection. If you have a choice, use a credit card for payments to unfamiliar recipients.

What should I do if I think someone is trying to scam me but I am not sure?

Stop the transaction and verify independently. Call the organization using a number you find yourself. Ask them directly: "Did you just contact me asking for money?" If they say no, you have your answer. If you are still unsure, do not send the money. The cost of delaying a legitimate payment is far lower than the cost of sending money to a scammer.