Despite remarkable advances in banking security, payment fraud remains a significant and systemic threat to the UK’s financial infrastructure.
New figures released by UK Finance reveal that criminals stole £1.17 billion in 2024 through both unauthorised and authorised push payment (APP) fraud – highlighting the enduring scale of this criminal enterprise.
Behind the headline numbers lies a stark truth: fraud is no longer a peripheral issue but a mainstream financial risk.
On the Up
While banks prevented £1.45 billion in unauthorised transactions – equivalent to stopping 67p in every pound of attempted fraud – criminal tactics continue to evolve.
This year’s data reveal a sharp uptick in remote purchase fraud, with case numbers climbing 22% to nearly 2.6 million and losses rising 11% to £400 million.
Criminals are increasingly turning to sophisticated social engineering techniques, such as manipulating victims into sharing one-time passcodes, enabling access to digital wallets and online accounts.
Winding Down
Encouragingly, some fraud categories show signs of receding.
Losses from card ID theft and contactless fraud declined, as did losses from remote banking fraud.
However, the net gains made by fraudsters elsewhere offset these improvements.
Overall, the number of unauthorised fraud cases climbed 14% in 2024, underscoring the adaptive nature of these threats.
APP fraud
APP fraud – where victims are tricked into authorising payments to criminals – remains particularly pernicious. Losses totalled £450.7 million in 2024, down just 2% on the previous year.
While case volumes fell sharply (down 20% to their lowest since 2020), the financial harm from investment scams surged 34% to £144.4 million.
These scams, which involve fake opportunities and bogus financial returns, often target vulnerable individuals. Even as awareness grows, criminals are shifting tactics to keep victims off balance.
The data also expose the enabling role of digital infrastructure.
77% of APP scams began on online platforms – social media, marketplaces and messaging apps – while telecom networks accounted for 16% of cases.
Notably, international payments linked to APP fraud almost doubled, signalling a pivot by criminals towards foreign jurisdictions to evade domestic controls.
Regulatory responses
Regulatory responses are beginning to bite.
In October 2024, the Payment Systems Regulator introduced new rules requiring banks to reimburse victims of APP fraud.
Early results are promising: between October and December 2024, 86% of money lost in eligible cases was refunded.
Across the year, total reimbursements reached £267.1 million, covering nearly 60% of APP fraud losses.
However, the fight against fraud cannot be won by the banking sector alone.
As UK Finance and BioCatch have argued, tackling this crisis demands a holistic, systemic response.
Technology firms, especially social media platforms and telecom providers, must be held to account for the role their systems play in facilitating fraud.
Real-time data sharing, cross-sector intelligence coordination, and public education are all essential to stymie criminal innovation.
Fraud is not merely a cost of doing business – it is a national economic threat.
Unless the UK adopts a genuinely integrated strategy, the billions stolen each year will continue to fund criminal networks at home and abroad.
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