In our increasingly digital world, scammers are becoming more sophisticated, but don't worry, we're here to help you stay ahead of the game. Let’s talk about what APP scams are, and how you can protect yourself and get support.
What are Authorised Push Payment (APP) Scams?
In simple terms, an APP scam is where you’re tricked into sending money by bank transfer to a fraudster.
Fraudsters use clever tactics to persuade you to authorise a payment to them. Whether they’re advertising an offer that’s too good to be true, impersonating your bank, or persuading you to invest for unbelievable returns, only to run away with your money. That’s what we call an APP scam. These scams take advantage of trust and emotions, and can potentially lead to significant financial losses and emotional distress.
Types of APP Scams:
Impersonation Scams: Organisations
Scammers often pretend to be from reputable organisations, such as your bank, HMRC or a delivery firm. They might contact you via phone, email, or text, claiming there’s an urgent issue that needs resolving. Make sure that you verify their identity using their official channels, and always hang up if you’re asked to move money to a “safe” account.
Impersonation Scams: Family & Friends
It doesn’t stop at organisations, fraudsters may even try to impersonate your friends or relatives. They’ll tug at your heartstrings to convince you to send money, claiming to be in a dire financial emergency. Remember, social media accounts can be cloned, so if you're unsure, take a step back and verify the situation, either by speaking to them directly or contacting them using a number you know is theirs.
Purchase Scams
Online shopping has become incredibly popular, but it’s also a hotspot for scammers. They’ll tempt you with fantastic deals, but after you've paid, the goods never arrive. To avoid disappointment, stick to trusted retailers. If you’re buying something from places like Facebook Marketplace, stay local and make sure you see the item in person before paying. Never buy from places like Instagram or Snapchat and remember: if an offer sounds too good to be true, it probably is.
Romance Scams
These scams normally involve fraudsters forming a close relationship with you online. You might be talking with them frequently over days, weeks or even months. They’ll then try to trick you into sending them money, saying that they are in financial distress, have an emergency or plan to travel to visit you but need to borrow money to do so. These are highly emotional scams, and the fraudsters can be very convincing. Never send money to someone that you’ve only met online, and if you’re using a reputable dating website, be careful of those who quickly want to take communications to text messages, Whatsapp etc.
Advance Fee Scams
This classic scam involves asking for payment upfront for something that will never materialise, be it a lottery win, an inheritance, or a loan. A good rule of thumb: legitimate organisations won’t ask you to pay fees upfront for winnings or loans. If they do, it’s time to walk away.
Missing Pet Reward Scams
When your pet goes missing, you’ll do absolutely anything to get them back. Fraudsters prey on desperate pet owners, scouring lost pet forums to find missing animals, before demanding payment from worried owners. They’ll often use images of the missing pet pulled from social media, or might even fake images using artificial intelligence in a bid to convince owners that their beloved pet has been found. It’s unfortunately unlikely that anyone demanding payment has found your pet. If this happens to you, you should contact the police on 101.
Investment Scams
Fraudsters know that many of us dream of financial success, so they’ll present enticing investment opportunities that promise quick and easy returns. Before parting with your money, do your research, consult a financial advisor, and only deal with reputable investment firms.
Protecting Yourself from APP Scams:
To stay ahead of scammers, here are a few practical tips:
Stay alert: Be cautious of unexpected payment requests, particularly if they come with a sense of urgency or an emotional appeal. Take a moment to verify the legitimacy of the request through trusted contact methods.
Don’t fall for bank scams: If you receive a call from your “bank” telling you that your funds are at risk, and that you should move them to a “safe” account, always hang up straight away. You can find the number for your bank on the back of your card if you have one. Alternatively, most banks will have an in-app contact method. You can also use the official 159 scheme by dialling 159 from your phone to connect to the majority of larger banks.
Double-check payment details: Don’t let scammers trick you into sending money to the wrong place. Before making any payments—especially to new or unfamiliar recipients—independently verify the details. Don’t rely solely on emails or invoices; give the organisation a call using verified contact information.
Shop safely online: While online shopping is convenient, be cautious when deals seem too good to be true. Do your homework, check seller reviews, and opt for secure payment methods that offer buyer protection.
Invest wisely: If you're exploring investment opportunities, be thorough. Research the firm, consult trusted financial advisors, and verify the company’s credentials before committing to any investment.
By staying vigilant, double-checking payment details, shopping with caution, and avoiding upfront fees, you’ll be in a much stronger position to safeguard your money.
What if I fall victim to an APP scam?
If you do fall victim to a scam, and have sent money from your Algbra account, you should do the following:
Contact us immediately through the Algbra app or by sending an email to support@algbra.com
Report the incident to Action Fraud, the UK’s national fraud and cybercrime reporting centre here or by calling 0300 123 2040. If you live in Scotland, you should contact the Police directly by calling 101.
The sooner you report the scam to us and the authorities, the quicker we can investigate and look to get your funds back in the right hands.
Helpful links:
Take 5 to Stop Fraud - a national campaign offering straight-forward, impartial advice that helps prevent email, phone-based and online fraud.
Top tips to stay safe from the scammers - a helpful guide from Ofcom on how to avoid falling victim to scams.
7726 - a free service for reporting scam text messages and phone calls to your mobile network provider.
We’re here to help
If something doesn’t feel right and you just want to check with us, or if you need help with anything else, you can reach our team via in-app chat, or by sending an email to support@algbra.com. There’s no question too big or too small, and we’re here to help in whatever way we can.