APP Fraud

BCB Group champions the fight against APP fraud

BCB Group operates on ‘compliance first’ principles. We take a zero tolerance approach to any criminal activity conducted across our platform and pride ourselves on the strength of our compliance, security and fraud prevention teams, processes and technology.

Whilst BCB Group only offers payments accounts to businesses and does not support individual retail consumers, our focus has always been supporting the evolution of a safe secure digital assets ecosystem for both our clients and their customers (who may include retail consumers). We continually strive to use our unique position as the premier payments service provider to the crypto industry to champion initiatives focused on the establishment of the highest levels of protection for all those seeking to use crypto as a means of payment or investment.

With the regretful increase in Authorised Push Payment (APP) fraud within the banking and payments industry and the particular vulnerabilities of retail consumers, we have never been more committed to creating a safe level playing field for our clients and their customers. We work closely within and across our industry, with our banking partners, regulators, law enforcement agencies and legal advisors, to ensure our products and services, and the products and services of our clients, are resilient to fraudsters.

What is APP fraud?

Authorised Push Payment (APP) fraud is a sophisticated type of financial crime that capitalises on deception and manipulation. It occurs when fraudsters deceive individuals or businesses into voluntarily transferring money to accounts controlled by the criminals or manipulate them to share personal details under false pretences. Unlike traditional fraud, which typically involves unauthorised transactions, APP fraud relies on manipulating the victim into authorising the transfer themselves. This makes APP fraud particularly challenging to address because the transaction is initially perceived as legitimate by banks and financial institutions.

APP fraud is currently the most common type of financial scam in the UK.

Key typologies of APP fraud

• CEO or Executive Impersonation:

• Description: Fraudsters impersonate a senior company executive or the CEO to instruct finance or accounting staff to make urgent transfers, often for a purported confidential deal.

• Example: An employee receives an email, seemingly from the CEO, requesting an immediate transfer to finalise a secret acquisition. The email address looks correct, but it is actually a spoofed version that differs by only one or two characters.

 

• Professional Body (HMRC/Bank/ Financial Services Firms) Impersonation:

• • Description: Fraudsters impersonate representatives from a professional body to deceive individuals into providing sensitive financial information or making fraudulent transactions.
  • Example: A customer receives a phone call from someone claiming to be from their bank’s fraud department, informing them of suspicious activity on their account and requesting their online banking credentials to “verify” their identity and secure their funds.

 

• Romance Scams:

• Description: Fraudsters use online dating sites or social media platforms to feign romantic intentions, build a relationship with the victim, and eventually request money for emergencies, medical issues, or travel.

• Example: After months of building a seemingly genuine relationship, the fraudster claims to be in a difficult financial situation due to a sudden illness or a detained family member abroad and asks for money to help resolve the issue.

 

• Investment Scams:

• Description: Victims are lured with promises of high returns on investments in various schemes, including cryptocurrency, real estate, or stocks that are non-existent or grossly misrepresented.

• Example: A victim receives a call or sees a social media advertisement from a seemingly reputable investment firm offering a once-in-a-lifetime opportunity to invest in a fast-growing technology company. The firm may ask the victim to download a remote desktop application (such as AnyDesk) to enable them remote access to the victim’s computer. The firm, however, is fake, and the investment money goes directly to the fraudsters.

 

• Invoice and Billing Scams:

• Description: Typically targeting businesses, fraudsters send fake invoices that appear to be from legitimate vendors or service providers. The amounts and services listed might be plausible, making it difficult to spot the fraud.

• Example: A business receives an invoice that closely resembles those from a real contractor it frequently works with, but the bank account details have been changed to divert payments to the fraudster.

 

• Advance Fee Scams:

• • Description: Involve fraudsters promising a large sum of money, a valuable item, or a lucrative opportunity in exchange for an upfront payment or fee. The scam typically targets individuals who are in financial distress or seeking quick financial gain. The fraudsters use various tactics, such as lottery,inheritance or business opportunities to lure victims into believing they will receive a significant return on their investment. However, once the victim pays the initial fee, the promised reward never materialises, and the fraudsters disappear with the money.
  • Example: An individual receives an email informing them that they have won a substantial sum of money in a foreign lottery. To claim the prize, they are instructed to pay a processing fee upfront. Excited by the prospect of winning, the victim pays the fee as requested. However, after sending the payment, they never receive the promised winnings, and the fraudsters cease all communication.

Key typologies of APP fraud

• CEO or Executive Impersonation:

• Description: Fraudsters impersonate a senior company executive or the CEO to instruct finance or accounting staff to make urgent transfers, often for a purported confidential deal.

• Example: An employee receives an email, seemingly from the CEO, requesting an immediate transfer to finalise a secret acquisition. The email address looks correct, but it is actually a spoofed version that differs by only one or two characters.

 

• Professional Body (HMRC/Bank/ Financial Services Firms) Impersonation:

• • Description: Fraudsters impersonate representatives from a professional body to deceive individuals into providing sensitive financial information or making fraudulent transactions.
  • Example: A customer receives a phone call from someone claiming to be from their bank’s fraud department, informing them of suspicious activity on their account and requesting their online banking credentials to “verify” their identity and secure their funds.

 

• Romance Scams:

• Description: Fraudsters use online dating sites or social media platforms to feign romantic intentions, build a relationship with the victim, and eventually request money for emergencies, medical issues, or travel.

• Example: After months of building a seemingly genuine relationship, the fraudster claims to be in a difficult financial situation due to a sudden illness or a detained family member abroad and asks for money to help resolve the issue.

 

• Investment Scams:

• Description: Victims are lured with promises of high returns on investments in various schemes, including cryptocurrency, real estate, or stocks that are non-existent or grossly misrepresented.

• Example: A victim receives a call or sees a social media advertisement from a seemingly reputable investment firm offering a once-in-a-lifetime opportunity to invest in a fast-growing technology company. The firm may ask the victim to download a remote desktop application (such as AnyDesk) to enable them remote access to the victim’s computer. The firm, however, is fake, and the investment money goes directly to the fraudsters.

 

• Invoice and Billing Scams:

• Description: Typically targeting businesses, fraudsters send fake invoices that appear to be from legitimate vendors or service providers. The amounts and services listed might be plausible, making it difficult to spot the fraud.

• Example: A business receives an invoice that closely resembles those from a real contractor it frequently works with, but the bank account details have been changed to divert payments to the fraudster.

 

• Advance Fee Scams:

• • Description: Involve fraudsters promising a large sum of money, a valuable item, or a lucrative opportunity in exchange for an upfront payment or fee. The scam typically targets individuals who are in financial distress or seeking quick financial gain. The fraudsters use various tactics, such as lottery,inheritance or business opportunities to lure victims into believing they will receive a significant return on their investment. However, once the victim pays the initial fee, the promised reward never materialises, and the fraudsters disappear with the money.
  • Example: An individual receives an email informing them that they have won a substantial sum of money in a foreign lottery. To claim the prize, they are instructed to pay a processing fee upfront. Excited by the prospect of winning, the victim pays the fee as requested. However, after sending the payment, they never receive the promised winnings, and the fraudsters cease all communication.