UK Bank Fraud Losses Exceeded £1 Billion Last Year
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UK Bank Fraud Losses Exceeded £1 Billion Last Year

Fraud losses in the UK declined by four percent in 2023 but still exceeded £1 billion, according to UK Finance data.

Criminals managed to steal a total of £1.17 billion through both unauthorised and authorised fraud during the year. Losses attributed to unauthorised transactions—covering payment cards, remote banking, and cheques—amounted to £708.7 million, showing a three percent decrease from 2022. The number of reported cases in this category fell to 2.7 million, a decline of two percent.

In terms of authorised push payment (APP) fraud, losses reached £459.7 million, a five percent drop from the previous year. This figure consisted of £376.4 million in personal losses and £83.3 million in business losses. The count of APP cases increased by 12 percent to 232,429, primarily driven by purchase scams where individuals are misled into paying for goods that are never delivered. The volume of such scams surged by 34 percent, topping 156,000 cases, while the financial losses escalated by 28 percent to £85.9 million, marking the highest losses and case numbers ever recorded. Purchase scams now represent 67 percent of all APP cases.

Additionally, romance scams—where victims are deceived into believing they are in a relationship—also saw significant rises, with losses climbing by 17 percent to £36.5 million and cases increasing by 14 percent.

Conversely, incidents of fraud involving impersonation of banks or police, which enticed individuals to transfer money to a so-called “safe account,” decreased by 37 percent, and the financial impact from this type of fraud fell by 28 percent.

In total, £287.3 million of APP losses was returned to victims in 2023, representing 62 percent of the total losses, an improvement from 59 percent in 2022.

Ben Donaldson, managing director of economic crime at UK Finance, stated, “The financial services industry is at the forefront of efforts to protect customers, prevent fraud, and assist those affected. With upcoming changes to reimbursement rules, there is a risk of more money falling into the hands of criminals unless the technology and telecommunications sectors take decisive action to combat the fraud rampant on their platforms and networks.”