🚨 APP Scams: A Growing Concern in the UK 🚨
Last year, UK consumers faced staggering losses of £341 million due to Authorised Push Payment (APP) scams. This rising tide of fraud highlights the urgent need for cross-industry collaboration and robust prevention strategies.
Key Findings
🟣 Where scams originate:
➖56% of APP scams stemmed from social media, messaging, and calls, leading to £67.4 million in losses.
➖Telecommunications platforms were responsible for 31% (£107.2 million) of losses, primarily through fraudulent calls and texts.
➖Email-based scams accounted for 10% (£35 million) of losses.
🟣Types of fraud:
➖Purchase scams made up a massive 68% of cases, with 152,192 incidents recorded.
➖Impersonation scams followed, representing 14% (31,321 cases).
➖Advance fee scams accounted for 9% (19,341 cases).
🟣The Regulatory Landscape
In October 2024, the Payment Systems Regulator (PSR) introduced mandatory fraud reimbursement rules for banks, marking a pivotal step in protecting consumers. These measures aim to hold financial institutions accountable while driving efforts to prevent scams before they occur.
🟣Industry & Consumer Advocacy
➖UK Finance has called attention to the enabling role of online platforms and telecoms in facilitating fraud.
➖Advocacy groups like Which? have emphasised the devastating harm caused by scammers exploiting these channels.
🟣What’s Next?
To address these pressing issues, we’re thrilled to announce that on 26th - 27th February 2025, we’ll host the UK’s Fraud Leaders' Summit.
One of our key sessions will focus on APP scams and the future of fraud prevention:
👉 What have been the immediate impacts of the new APP reimbursement policy on banks and consumers?
👉 What does the next phase of fraud prevention look like?
👉 How will standardisation and collaboration create positive results for the future?
This is a pivotal opportunity for fraud leaders across the UK to align strategies, discuss regulatory impacts, and drive meaningful change in the fight against APP scams.
💡 Let’s work together to create a safer, more secure payments ecosystem.
📅 Save the date: 26th - 27th February 2025
📍 Join us for the UK’s Fraud Leaders' Summit
Read the full article for more insights: https://lnkd.in/eYrHqN9s
