Fraud losses hit £1.17bn for second year running

Fraud losses totalled £1.17bn for the second year running in 2024, according to the latest UK Finance annual fraud report — with more than £450m lost to bank transfer scams.

These scams, officially known as Authorised Push Payment (APP) fraud, occur when someone is deceived into making a payment under false pretences. 

While losses remain high, the number of APP cases fell by 20% last year, which UK Finance attributes to better fraud detection technology and growing consumer awareness. 

Here, Which? delves into some of the most commonly reported types of fraud – and why we’re calling on ministers to stand firm on protecting scam victims. 

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Investment scams topped APP fraud losses

Investment scams were the highest-value type of APP fraud in 2024, and made up almost a third of all APP scam losses – even though there were fewer cases than in previous years.

These scams involve victims being persuaded to put money into dodgy financial schemes with promises of large returns. Investment scams often rely on manipulating victims over a period of time while asking them to invest more and more of their money.

Victims are often targeted through cold calls or social media adverts, with scammers using pressure tactics or promoting opportunities that are 'too good to be true'. 

While the number of cases fell, the total amount lost jumped sharply, indicating that fraudsters are potentially targeting larger sums from fewer victims. 

• Find out more: what to do if you fall victim to bank transfer scam 

Purchase scams made up most of APP fraud cases

Purchase scams were the most common type of APP fraud in 2024, making up seven in 10 reported cases.  

These scams involve victims being tricked into buying non-existent items or services. Purchase scams can involve concert tickets, items such as clothes and technology products and even holidays being sold online which never materialise. Typically, these items are advertised at attractive discounts to draw in buyers.

The number of purchase scams cases fell in 2024, but losses rose slightly to £87.1m. This could indicate that fraudsters are attempting to make more money from each scam by advertising fake products at higher prices.

Nearly nine in 10 purchase scams originated online, and the average loss per case was £663, according to UK Finance. 

• Find out more: how to get your money back after a scam

Reimbursement rates have improved 

In October 2024, the Payment Systems Regulator (PSR) introduced new rules requiring banks and payment firms to refund victims of APP  fraud, up to a maximum of £85,000 per case. The PSR is the UK regulator that oversees how payment systems work and aims to make them safer for consumers.

Since then, it’s reported that 86% of money lost to scams was returned to victims, totalling around £27m. The reimbursement cost is split between the bank that sent the payment and the one that received it.

However, these rules only apply to domestic payments. If a scammer tricks someone into sending money to an international bank account, that payment is excluded from the reimbursement scheme — and victims are much less likely to get their money back.

In its fraud report, UK Finance reported that international payments had risen significantly, with total losses jumping from £25.9m in 2023 to £49.9m in 2024.

• Find out more: new bank transfer fraud refund scheme sees 86% of losses refunded

Scammers target most victims online 

According to UK Finance, last year seven in 10 APP fraud cases began online — often through scam adverts on social media or fake listings on shopping platforms. A further 16% were enabled by telecoms, such as phone calls or text messages.

The Online Safety Act (OSA), enforced by Ofcom, became law in 2023 to help tackle illegal content online, including scams. It sets out duties for online platforms to better detect and remove harmful content. 

However, the process for implementing duties on most scam ads for major platforms has been delayed and most likely won't come into force until 2027. 

• Find out more: fraud victims who pay the wrong way could be left with nothing

Which? responds to the UK finance fraud report

Which? has warned that despite progress in tackling APP fraud, scammers are shifting tactics and exploiting gaps in the system — especially when it comes to international payments.

Rocio Concha, Which? Director of Policy and Advocacy, said: ‘While it's encouraging to see the number of APP fraud cases dropping to their lowest levels in five years, the amount of money lost to this crime remains eye-watering, with devastating consequences for victims.

'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. 

'These payments are not covered by new mandatory reimbursement rules, meaning victims of this type of fraud are unlikely to get their money back. Banks and payment firms should enhance their anti-fraud controls for international payments, and the independent review of the mandatory reimbursement scheme in October should take note of these emerging trends.

'As this report makes clear, fraudsters are continuing to exploit gaps in the system. That's why it's crucial that the government gets tough with payment firms not taking the security of their customers seriously and ensures social media firms, search engines and telecoms firms put the right systems in place to properly protect their customers.’

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