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APP Fraud in Focus as Digital Tools Redefine Prevention Tactics
The widespread adoption of person-to-person (P2P) payment apps and services has fueled a surge in credit-push payment volume, a trend that has been further accelerated by the recent introduction of real-time payments in the United States.
As this payments landscape continues to evolve rapidly, fraudsters are seeking fresh avenues to exploit unsuspecting individuals, and credit-push scams, often referred to as authorized push payment (APP) fraud, have become a staple in their arsenal of tactics.
According to a Jan. 29 blog post by the Federal Reserve Bank of Atlanta, instances of APP fraud, whereby a criminal tricks an individual or business into transferring funds to the fraudster’s account, necessitate “a shift in our curriculum, mitigation techniques, and approach to consumer protection.”