Authorized push payment (APP) fraud
Also known as: APP fraud · Zelle scam · Impostor scam · Bank impersonation scam · Payment scam
A scam in which the victim is persuaded to send a payment themselves — by Zelle, wire or another push transfer — to an account the fraudster controls, usually through a story of urgency or a fake identity.
Legal basis
Regulation E, 12 CFR 1005.2 (definitions)
APP fraud almost never breaks into a system. It exploits the person: a fake bank fraud department "protecting" the account, a relative in trouble, a romance, a fake investment. The victim initiates the transfer, which is what makes it so hard to reverse. The FTC counted $3.5 billion in reported impostor-scam losses in 2025, nearly $1 billion of it to bank impersonators.
The US legal line runs through Regulation E. It protects consumers against unauthorized electronic fund transfers, defined as transfers initiated by someone other than the consumer without authority — and the CFPB's position is that if a scammer tricks you into sharing login credentials and then moves the money, the transfer is unauthorized. But a payment the consumer sends personally, however fraudulently induced, falls outside that definition, and wire transfers through Fedwire-type systems are excluded from Regulation E altogether. Reimbursement then depends on the bank's and the network's own policies.
On the receiving side, the scam's link is the destination account — usually a mule or synthetic account. Blocking those accounts from opening, by spotting borrowed identities and their connections to other accounts used in scams, is what cuts the flow before the next victim.
Frequently asked questions
Will my bank refund money I sent to a scammer on Zelle?
It depends. If a scammer accessed your account and sent the money, the transfer is unauthorized under Regulation E and you have strong refund rights if you report promptly. If you sent the payment yourself after being tricked, federal law generally does not require a refund, and the outcome depends on your bank's and the network's policies. Report it immediately either way.
What should I do if I sent money to a scammer?
Contact your bank or payment app right away and ask them to stop or recall the payment, report the scam to the FTC at ReportFraud.ftc.gov, and change any credentials you shared. Speed matters because funds are moved out of the receiving account quickly.