To mark International Fraud Awareness Week, Payments System Regulator (PSR) has released research on the impact of Authorised Push Payment (APP) fraud on UK consumers.
The study surveyed over 1500 UK adults, finding that falling victim to APP scams impacted their financial lives, economic activity, and social wellbeing.
The most common incidents were purchase scams under £200. However, the emotional impact of fraud is significant, with one in five victims reporting the experience made them feel anxious and depressed, and 50% of victims saying that it reduced their trust in others.
32% of victims stated that they lost confidence in new payment methods, and 41% said they no longer trusted social media companies.
The study found that banks are responding to fraud better than platforms, with 53% of victims who reported a APP scam to a bank saying that they were satisfied, compared to two of five who reported to a platform saying that it was mishandled.
53% of victims in the last five years were reimbursed to some extent, and 41% were reimbursed in full after losing money to an APP scam.
The main priority for victims after falling for APP scams was reimbursement, with 67% stating so. 19% reported that their top priority was removing fraudulent content, and 7% said it was to investigate the fraud.
PSR has been making efforts ensure protections for APP fraud victims, having pushed for mandatory reimbursement rules in place, increased data transparency from banks and social media, and the rollout of anti-fraud tools like Confirmation of Payee.
PSR’s head of policy, Kate Fitzgerald, commented: “This research emphasises the devastating impacts of fraud on consumers’ mental wellbeing and trust. APP fraud isn’t just a financial setback, it affects people’s confidence in payments and can leave them fearful of using digital platforms and retailers in the future.
“This International Fraud Awareness Week, as we approach big shopping events like Black Friday, it’s crucial for consumers to stay vigilant – but not fearful. That’s why our new protections are so important – now, consumers can feel reassured that if they fall victim to APP fraud despite taking the right precautions, they will be able to get their money back.”