What is APP Fraud? 
APP fraud involves fraudsters posing as trusted organisations to trick their victims into transferring large sums of money to them. 

The hypothetical example described in the introduction is among the most common scams. Fraudsters will typically gain access to an email account, where they can watch correspondence between contractors and customers. 

They use their findings to set up spoof websites, fake email addresses and send realistic counterfeit invoices that lend credibility to expertly-timed requests for payment, often accompanied by a note explaining away changes to account details. 

There are several types of APP fraud, which fall broadly into two categories. Malicious payee fraud involves tricking victims into paying for goods or services that don’t exist, while the above examples fall into the category of malicious redirection. 

Fraudster Techniques 
While APP fraud is a relatively new phenomenon, the techniques used by scammers are not. 

They use social engineering – manipulating victims into giving up confidential information – to access email or bank accounts to trick people into sending money or enact the transaction personally. 

They also commonly hack businesses’ systems to send ‘spoof’ emails that appear legitimate to the recipient.