UK banks and payment providers are under increasing pressure to upgrade their security measures after a sharp rise in international payment scams left victims out of pocket and unable to recover their losses. New figures from the banking trade body UK Finance show that while overall cases of authorised push payment (APP) fraud have dropped, international fraud continues to surge.
APP scams occur when individuals are tricked into transferring money to criminals under false pretences. The total number of APP scam cases fell by 20% in 2023, down to 186,000 incidents, compared to over 232,000 the previous year. This reduction is widely credited to mandatory reimbursement rules introduced last October, requiring banks and payment firms to compensate domestic victims.
However, the total financial loss from APP fraud saw only a slight 2% drop, totalling £450 million, indicating that criminals are targeting fewer victims but persuading them to send larger sums.
International Payment Scams Nearly Double
A particularly troubling trend is the growing number of scams involving international payments. These now account for 11% of total APP fraud losses – almost double the figure from 2023. Since these scams fall outside the scope of the UK’s reimbursement scheme, victims are unlikely to recover any funds.
Rocio Concha, director of policy and advocacy at consumer watchdog Which?, warned: “Fraudsters are constantly evolving their tactics, so it is disheartening but unsurprising to see a rise in the number of cases in which scammers trick their victims into sending money abroad. Banks and payment firms must urgently improve their anti-fraud systems for overseas transactions.”
Purchase and Investment Scams Still Dominant
According to UK Finance, 71% of APP fraud cases last year were purchase scams, where victims paid for goods or services that never materialised. However, the largest financial losses stemmed from investment scams, which accounted for over £144 million in stolen funds in 2024 — a 34% increase from 2023. Many of these scams involve fake cryptocurrency schemes or non-existent funds.
Visa and UK Finance Warn of Sophisticated Fraud Tactics
Visa has also flagged a number of evolving fraud methods spreading across the UK and Europe. These include:
• Fake Sales Websites offering expensive goods at low prices to obtain one-time passcodes from victims.
• Malicious Apps mimicking legitimate organisations to steal personal and financial data.
• ‘Ghost Tap’ Fraud where card details are linked to criminal-controlled digital wallets for remote contactless payments.
• AI-Powered Identity Theft using generative AI to create fake identities and open fraudulent accounts.
Even UK Finance itself was targeted, issuing a warning about scammers posing as representatives and offering fake loans with upfront fees. The organisation clarified it does not provide any financial products, and any such offers are fraudulent.
As scammers adopt increasingly sophisticated tactics, experts are calling on regulators and banks to include international scams in the mandatory refund scheme and close security gaps to better protect consumers.
