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Authorized Push Payment (APP) Fraud
Authorized Push Payment (APP) fraud occurs when a fraudster manipulates a victim into authorizing a payment to their account. Unlike unauthorized transactions, the victim willingly initiates the transfer, believing they are sending money to a legitimate party. Common schemes involve criminals impersonating banks, government officials, or trusted service providers. Since the payment is authorized, recovering the funds becomes difficult, making APP fraud a significant challenge.
Addressing APP fraud requires educating customers on how to recognize these schemes and using behavioral analytics to identify unusual payment patterns. Strengthening customer verification processes and closely monitoring payment behaviors can help reduce risk, while collaboration across industries can improve efforts to recover funds and prevent future fraud.
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