To mark International Fraud Awareness Week, the Payments System Regulator (PSR) has released research highlighting the impact of Authorised Push Payment (APP) fraud on UK consumers.
The study surveyed over 1,500 UK adults and revealed that falling victim to APP scams adversely affected their financial stability, economic activities, and social wellbeing. The most frequently reported incidents involved purchase scams under £200. However, the emotional toll of these scams was significant: one in five victims described feelings of anxiety and depression resulting from their experience, while 50% reported a decrease in trust towards others.
Additionally, 32% of victims expressed that they lost confidence in new payment methods, and 41% stated they no longer trusted social media companies. The research indicated that banks are handling fraud cases more effectively than platforms, with 53% of victims who reported APP scams to banks expressing satisfaction with the response, compared to only 40% of those who reported to platforms, who felt their cases were mishandled.
In the past five years, 53% of victims received some reimbursement, with 41% being fully refunded after experiencing an APP scam. Following such incidents, the primary concern for victims was reimbursement, with 67% prioritizing this, while 19% wanted to see the removal of fraudulent content, and 7% sought an investigation into the fraud.
PSR has been proactive in ensuring protections for APP fraud victims by advocating for mandatory reimbursement regulations, enhancing data transparency from banks and social media platforms, and promoting anti-fraud measures like Confirmation of Payee.
Kate Fitzgerald, PSR’s head of policy, stated, “This research highlights the devastating impacts of fraud on consumers’ mental wellbeing and trust. APP fraud is not just a financial setback; it undermines confidence in payment systems and can leave individuals apprehensive about using digital platforms and retailers in the future.
“As we enter major shopping events like Black Friday during this International Fraud Awareness Week, it’s essential for consumers to remain vigilant without being fearful. Our new protections are critical—consumers can now feel reassured that if they fall victim to APP fraud despite taking proper precautions, they will be able to recover their funds.”