Authorised push payment (APP) fraud declined in 2024 following regulatory and industry interventions. Total fraud rates, however, remain largely unchanged as scammers look to other avenues according to new research.
In the annual fraud report from UK Finance it was revealed that APP, a form of fraud in which someone is tricked into approving a fraudulent transaction from their account, had fallen by around 2% in 2024, with losses dropping to £450.7m.
APP has been one of the most pervasive forms of financial crime in the UK and a key target for lawmakers and payment providers.
The report claimed that interventions, including major prevention investments from the banking and finance industry as well as the introduction of APP reimbursement protections last October.
While actions to reduce APP have seemingly been successful, the total amount stolen through fraud in the UK last year was broadly the same as 2023, at £1.17bn. This is because other forms of crime – notably remote purchase fraud – were found to have increased.
Remote purchase fraud is when criminals use stolen card details to make online purchases. According to UK Finance, the practice grew by 14% last year.
Commenting on the report, Jonathan Frost, director of global advisory for EMEA at anti-fraud group BioCatch said: “The banking industry has done a solid job in reducing APP fraud, and the controls in place have made it more difficult for fraudsters.
“But where one door closes, another opens, and we’re now seeing a shift towards remote purchase fraud. We expect this could increase even more.”
The report also noted that a significant proportion of scams originate from social media, adding fuel to the fire of a campaign championed by figures in the fintech sector such as Revolut, Pockit and Innovate Finance to extend reimbursement liability to social media firms.
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