Research from the Payment Systems Regulator reveals that victims of reimbursed fraud become more vigilant regarding fraud risks rather than complacent.
A survey of over 1,500 UK adults highlights the extensive effects of Authorised Push Payment (APP) fraud, with losses surpassing £213 million in the first half of this year alone. Nearly 20% of victims reported feeling anxious or depressed due to their experience, while half indicated a decrease in their trust towards others.
The findings challenge the notion that reimbursement fosters complacency, as those compensated reported heightened awareness of fraud risks. Additionally, 32% of victims expressed a loss of confidence in new payment methods, illustrating the lasting ramifications of fraud on consumer trust.
The consequences of fraud extend beyond the payments industry, with 41% of victims losing trust in social media companies, a figure four times greater than those who lost faith in traditional banks.
Kate Fitzgerald, head of policy at the PSR, noted, “This research underscores the devastating impacts of fraud on consumers’ mental wellbeing and trust. APP fraud is not merely a financial loss; it undermines confidence in payments and creates apprehension about utilizing digital platforms and retailers in the future.
“As we recognize International Fraud Awareness Week and approach significant shopping occasions like Black Friday, it is vital for consumers to remain vigilant but not fearful. Our new protections aim to reassure consumers that if they become victims of APP fraud despite taking appropriate precautions, they will be able to recover their money.”