What is it?
A push payment fraud takes place when the victim sends money to a scammers account with the intention of buying whatever product the fraudster is advertising (e.g. a vehicle) the fraudster then takes the money out of the scammer bank account and cannot be contacted again.
What is the difference between push and pull payments?
A pull payment is when an account, such as a company, pulls money from a person’s bank account (e.g. Direct Debit) whereas, a push payment is when the account holder sends money to another account.
Why do fraudsters use it?
Fraudsters use this kind of payment by posting a product (e.g. a vehicle) for a low price on a website such as (e.g. eBay or Gumtree) this is when the victim of the scam will get in touch and want to buy the product. The fraudster will then state that they want payment before they let the car go or that they don’t want to do the payment through PayPal meaning they want the money sent straight to their bank account. These are automatically red flags. Once the victim has sent the payment the fraudster will cut off all contact and keep the money
Who can push payment fraud effect and how can it be avoided?
Push payment fraud can affect anyone at any time. It all depends on if you know the signs of fraud to avoid it.
- Do your research
- Check the seller’s feedback
- Check the items description
- If it seems too good to be true it probably is.