Authorised push payment (APP) scams cost UK consumers £341 million last year, with social media platforms used by fraudsters to carry out more than half of the volume of incidents, according to figures from a regulator.
APP scams happen when someone is tricked into transferring money to a fraudster.
The Payment Systems Regulator (PSR) said that in 2023, social media, messaging and call platforms were targeted by criminals to carry out 56% of APP scams (124,057 incidents), accounting for around one fifth of the value lost (£67,429,184).
Auction – or purchase – and listing platforms were targeted by fraudsters to carry out incidents accounting for 6% of the total loss value.
Telecommunications platforms were used to carry out a significant amount of APP scams via fraudulent calls and text messages, with fraudsters using these methods accounting for 31% of the value lost, at £107.2 million.
Email providers were also targeted by fraudsters to carry out 10% of losses by value, at £35 million, although these only accounted for 2% of the volume of incidents.
In October 2024, the PSR introduced mandatory fraud reimbursement rules for banks.
Previously, many banks had signed up to a voluntary reimbursement code.
Kate Fitzgerald, the PSR’s head of policy, said: “Our report highlights how major platforms are being exploited by fraudsters to deceive victims, often with devastating effects…
“Preventing scams before they happen is the best way to protect consumers and reduce harm.”
The analysis indicated that purchase scams are the most common type of APP scams in the UK, making up 68% of cases in 2023 (152,192 incidents).
Impersonation scams made up 14% (31,321 incidents) and advance fee scams, the third most common, made up 9%, with 19,341 incidents.
The PSR has been using its powers to gather data from major banking groups.
Ben Donaldson, managing director of economic crime at UK Finance, said: “This new report from the Payment Systems Regulator reiterates what we have long been saying – that criminals are exploiting online platforms and telecommunications to commit fraud.”
He added: “It is only by stopping fraud in the first place that we will protect consumers and society from the harm this crime causes.”
Rocio Concha, Which? director of policy and advocacy, said: “Fraud continues to cause its victims misery and, as this research shows, scammers are successfully exploiting social media platforms and telecoms companies to target consumers.”
