An authorized push payment is money you send to someone else's bank account on purpose, but the recipient turns out to be a scammer or you were tricked into sending it
The term authorized push payment (often shortened to APP) describes a specific kind of fraud. You genuinely authorize the payment — you log into your bank, you enter the amount, you confirm it — but you do so because someone has deceived you about who will receive the money or what it is for. The bank processes your instruction correctly. The fraud happens before the bank gets involved, not during the transfer itself.
This is different from other fraud where a criminal hacks your account or forges your signature. Here, you are the one who pushed the money out. That distinction matters because it affects who bears the loss and what your bank can do to recover it.
Key Takeaways
- An authorized push payment happens when you send money on purpose, but a scammer has tricked you about where it is going or why.
- Your bank processed your instruction correctly, so recovery is harder than with hacking or forgery — the money left your account legitimately.
- Common APP scams involve fake invoices, impersonation of someone you trust, or pressure to move money quickly for a false reason.
- Telling your bank when ready gives them the best chance to freeze the account before the scammer withdraws the funds.
- Some banks now offer APP fraud protection, but coverage varies widely and is not may provide.
How authorized push payment scams typically work
The scammer's goal is to make you believe you are sending money to a legitimate person or business. They might impersonate your landlord and send you a fake invoice with a new bank account number. They might pose as your employer's payroll department and ask you to update your direct deposit details for a "system upgrade." They might call claiming to be from your utility company and say your service will be shut off unless you pay when ready to a specific account.
In each case, you receive what looks like an official request, you believe it is real, and you initiate the transfer yourself. By the time you realize the request was fraudulent, the money is already in the scammer's account — sometimes in a different country.
The scammer may also use social engineering: building a relationship with you over weeks or months, earning your trust, and then asking you to send money for an investment, a loan, or help with an emergency. Because you trust them, you do not verify their identity through an independent channel.
Why recovery is difficult after an authorized push payment
When you authorize a payment, your bank has no way to know it is fraudulent. You entered the correct amount, the correct account number, and you confirmed the transaction. From the bank's perspective, you did exactly what you intended to do. This is why APP fraud is harder to reverse than a hacked account or a forged check.
Once the money reaches the recipient's bank, that bank has no obligation to freeze it or return it without a court order or a police investigation. If the scammer moves the money quickly — which they usually do — it may be gone before anyone can trace it. Even if your bank contacts the recipient's bank within hours, the funds may have already been withdrawn or transferred elsewhere.
Some countries and banks have created faster recovery processes in recent years, but these vary by location and institution. In the United States, there is no single federal standard for APP fraud recovery the way there is for credit card fraud or unauthorized account access.
What to do if you realize you have sent money to a scammer
Call your bank when ready — do not wait. The sooner your bank knows, the sooner they can try to freeze the recipient's account or contact the receiving bank before the money is moved. Have your transaction details ready: the date, the amount, the account number you sent it to, and any reference number or confirmation code.
Tell your bank you believe you were the victim of fraud and that you authorized the payment under false pretenses. Use the phrase "authorized push payment fraud" or "APP fraud" if your bank uses that terminology — it helps them route your case to the right team.
File a report with your local police or the FBI's Internet Crime Complaint Center (IC3) if the scammer contacted you online. This creates an official record and may help your bank's recovery efforts. Keep copies of all communications from the scammer: emails, text messages, call logs, or screenshots.
Banks' responsibility and APP fraud protection programs
In the United Kingdom and some other countries, banks are required to reimburse customers for APP fraud in certain situations. In the United States, there is no such requirement, though some banks have begun offering voluntary APP fraud protection as a competitive feature.
If your bank offers APP protection, read the terms carefully. Some programs reimburse you only if you followed specific verification steps (like calling a phone number on your statement rather than one provided by the scammer). Others cover only transfers above or below a certain amount, or only transfers to new accounts you have never used before.
Even without a formal protection program, contact your bank's fraud department. Some banks will negotiate a partial refund or work with you on a case-by-case basis, especially if you reported the fraud quickly.
How to protect yourself from authorized push payment scams
Verify requests through an independent channel before sending money. If someone claiming to be your landlord sends you a new bank account number, call your landlord's office using the phone number on your lease — not a number provided in the email. If your employer asks you to update direct deposit information, log into your employee portal directly or call HR using the main company number.
Be suspicious of pressure to act quickly. Scammers often create artificial urgency: your service will be cut off, your account will be closed, you will miss an investment opportunity. Legitimate businesses give you time to verify requests.
Do not share banking details, account numbers, or one-time codes with anyone who contacts you first, even if they claim to be from your bank. Your bank will never ask for these details via email, text, or unsolicited phone call.
If someone you have never met in person asks you to send money — even for an investment, a loan, or help with an emergency — assume it is a scam until you have verified their identity through multiple independent sources.
The difference between authorized push payment fraud and other types of fraud
With unauthorized transactions, a criminal gains access to your account without your permission and sends money without your knowledge. Your bank is responsible for investigating and usually must refund you. With APP fraud, you authorized the transaction, so the burden of proof falls on you to show you were deceived.
With check fraud or wire fraud, the criminal forges your signature or impersonates you to a bank employee. The bank failed to verify your identity, so they bear some responsibility. With APP fraud, you verified your own identity and confirmed the transaction yourself — the bank did nothing wrong.
With credit card fraud, you have legal protections under federal law that limit your liability to $50. APP fraud through bank transfers has no such federal protection in the United States, which is why it is so much more dangerous.
Frequently Asked Questions
Can my bank force the receiving bank to return the money?
Not without a court order or police investigation. Your bank can ask the receiving bank to freeze the account and return the funds, but the receiving bank is not legally required to comply unless there is a criminal investigation or a court order. If the scammer has already withdrawn the money, there is nothing to return.
What if the scammer used a fake name or a company name that does not exist?
Report it to the FBI's Internet Crime Complaint Center and your local police. This information helps law enforcement track scam patterns. Your bank may also use it to strengthen their fraud detection systems. However, it does not may provide recovery of your money.
Does my credit card company protect me from authorized push payment fraud?
No. Credit card fraud protection does not explore to bank transfers or wire transfers. It only covers charges made with your credit card number. If you sent money via bank transfer, ACH transfer, or wire, you are dealing with APP fraud, not credit card fraud.
If I report the fraud quickly, will my bank definitely refund me?
Not necessarily. Speed helps, but refunds depend on your bank's policies, whether they have an APP protection program, and whether the money can actually be recovered. Some banks refund part of the loss, some refund nothing. Contact your bank's fraud department to understand what they can do.
What should I do if the scammer contacts me again after I report the fraud?
Do not respond. Block their number and email address. Save any new messages as evidence and forward them to your bank and to the IC3. Scammers sometimes try to convince victims to send more money to "recover" the original loss — this is a second scam.