Avoiding Customer-Authorized Scam Payments

Authorized Push Payment Scams Are on the Rise

Customer-authorized scams, also known as authorized push payment (APP) scams, are one of the fastest-growing types of fraud in the U.S.

The FBI reported $16.6 billion in internet crime losses in 2024, a 33% increase from 2023, with investment and romance scams leading the way. Adults over 60 suffered $4.9 billion in losses in 2024 alone, up 43% year-over-year.

Deloitte estimates total APP fraud losses in the U.S. could reach $15 billion by 2028. Knowing the signs of a scam payment can help you avoid these losses.

What is a Scam Payment?

A scam payment happens when a criminal convinces you into sending money — often through a romance, an emergency, a fake investment opportunity, or a caller pretending to be the government or your bank. Because you authorized the transfer, it is very difficult for your bank to recover the funds.

Common Scam Types to Know

Romance scams: An online relationship develops over weeks or months, then the persona asks for money to cover an emergency, medical expenses, or travel.
Impostor scams: A caller claims to be the IRS, Social Security, law enforcement, or your bank and demands immediate payment to avoid arrest or account closure.
Investment or crypto scams: A fraudster promises high returns; early gains may look real until you try to withdraw your money.
Grandparent or emergency scams: You’re told a family member is in trouble and needs money wired immediately.
Lottery or prize scams: You’re told you’ve won something but must pay ‘taxes’ or ‘fees’ first to receive it

How to Protect Yourself

Slow Down. Urgency is a Major Red Flag

Any situation requiring same-day payment deserves at least a 24-hour pause and independent verification. Legitimate businesses or agencies will wait. Scammers will not.

Hang Up and Call Back Using a Trusted Number

If someone calls claiming to be your bank, the IRS, or law enforcement, hang up and call the number on your card or the official website. Never call back the number they gave you.

Verify Independently Before You Send

Before wiring money to anyone new, confirm their identity using a number you found yourself — not one they provided. Search for the business online.

Know That Legitimate Organizations Do Not Ask for Gift Cards

The IRS, Social Security, law enforcement, and HomeTrust Bank will never ask you to pay with gift cards, wire transfers, or cryptocurrency. That request alone confirms it is a scam.

Talk to Someone You Trust First

Before sending money in an urgent situation, talk to a family member, friend, or your HomeTrust banker. Scammers rely on secrecy and isolation.

Warning Signs to Watch for

You can often spot scams before you lose your money. Look out for the following signs:

You feel pressured to act immediately and told not to tell anyone.
The caller knows personal details about you and uses them to sounds legitimate.
The request involves a wire transfer, Zelle, gift cards, or cryptocurrency.
The story changes or doesn’t add up when you ask questions.
You’re told to move money to a ‘safe account’ for protection.

Authorized Payment Scams Targeting Businesses

Businesses are prime targets for authorized payment scams because payments are larger, the disbursement cycles are predictable, and employees are trained to act quickly on instructions from managers and trusted vendors.

Controls Businesses Can Put in Place

Verify Payment Instruction Changes by Phone

Any request to change a vendor’s bank account or wire instructions must be verified by calling a known, previously confirmed number — never the contact in the email making the request. This single control can stop most business email compromise scams.

Establish a Callback Verification Protocol

Create a written policy requiring callback verification before processing any new or changed payment instruction over a set dollar threshold. Make it a standard operating procedure.

Use Dual Controls for All Outgoing Payments

Require two authorized employees to approve any wire transfer or to change payment instructions. Separation of duties is one of the most effective ways to deter fraud.

Train Employees to Recognize and Question Urgency

Urgency, secrecy, and unusual requests are the hallmarks of scam payments. Employees should feel empowered to slow down, question, and escalate — even when the request appears to come from leadership.

Verify New vendors Independently Before First Payment

Confirm all banking details for new vendors through a number you find independently — not from the invoice or email. Call their publicly listed main line to confirm.

I’m Being Targeted. What Can I Do?

Contact HomeTrust Bank immediately at 800.627.1632. If you have already sent a transfer, call right away. A recall attempt may still be possible. Report the scam through the Federal Trade Commision and the FBI’s Internet Crime Complaint Center.