Shocking New Report Reveals APP Fraud Costs UK Consumers £3 Billion Annually
A groundbreaking report by the All Party Parliamentary Group on Fair Banking has revealed that the true scale of Authorised Push Payment (APP) fraud in the UK is approximately eight times higher than previously reported by the banking industry.
While banks and regulators have claimed that APP fraud stands at around £380 million per year, the parliamentary report calculates that losses actually amount to about £3 billion annually – representing one of the largest financial crime epidemics facing the UK today.
What is APP Fraud?
Authorised Push Payment fraud occurs when victims are manipulated into making real-time payments to fraudsters, often involving impersonation of trusted organisations like banks, government agencies, or service providers. Victims authorize these payments themselves, making them particularly difficult to detect and prevent.
. These individuals have already experienced the financial and emotional trauma of being scammed – often losing life-changing sums of money. To then impose an additional £250 charge simply for exercising their right to professional representation seems not only unfair but potentially obstructive to justice.
Common types of APP fraud include:
- Bank impersonation scams: Fraudsters posing as your bank’s security team
- Investment scams: Fake cryptocurrency or property investment opportunities
- Romance scams: Building relationships to extract money from victims
- Purchase scams: Selling non-existent goods online
- Invoice fraud: Intercepting and altering payment details
Alarming Trends in Banking Fraud
The report highlights concerning trends in how banks are handling fraud cases. One particularly troubling finding shows that banks are actually becoming slower at identifying fraudulent activity on victims’ accounts.
In 2020, victims of APP fraud were making an average of 1.6 payments to scammers in each case. By 2024, that figure had increased to 1.8 payments per case – a jump of 16%. This suggests banks are taking longer to spot and stop fraudulent transactions.
For certain types of scams, the situation is even worse:
- Romance scam victims now make an average of 10.8 payments before fraud is detected (up from 5.5 in 2020)
- Investment scam victims make 3.6 payments on average (up from 2.4 in 2020)
Social Media’s Role in the Fraud Epidemic
The report identifies social media platforms as major enablers of fraud, with Meta (Facebook, Instagram, WhatsApp) accounting for over half of all scams. These platforms provide the perfect breeding ground for fraudsters to identify, target, and manipulate potential victims.
Despite the significant role these platforms play in facilitating fraud, they currently bear none of the reimbursement costs that fall on banks and ultimately consumers.
The Compensation Challenge
In October 2024, new regulation from the Payment Services Regulator introduced mandatory reimbursement for victims of APP fraud. However, early evidence suggests some banks are not processing compensation claims quickly enough:
- Banks are required to process claims within five working days
- Many victims report waiting weeks or even months for responses
- The maximum reimbursement amount was reduced from £415,000 to £85,000 after extensive banking industry lobbying
This creates significant challenges for fraud victims trying to recover their money, especially for those who have lost substantial sums through property purchases or pension transfers.
How APP Claims Can Help
If you’ve fallen victim to an APP scam, recovering your money can be a complex and frustrating process. Many victims find their initial claims rejected by banks, often for questionable reasons.
At APP Claims, we specialise in helping victims of APP fraud recover their money, even when banks have initially rejected reimbursement requests. Our team:
- Provides expert case assessment free of charge
- Handles all communications with financial institutions
- Builds compelling evidence packages
- Escalates to the Financial Ombudsman Service when necessary
- Works on a No Win, No Fee basis
The parliamentary report confirms what we’ve long observed through our casework – fraud is an epidemic costing UK consumers billions, and many victims face significant challenges when seeking reimbursement from their banks.
If you’ve lost money through an APP scam, contact APP Claims today for a free assessment of your case. Our specialists are ready to help you navigate the reimbursement process and fight for the compensation you deserve.
The information in this article is based on the All Party Parliamentary Group on Fair Banking’s report “Authorised Push Payment Fraud – Who Bears the Burden?” published in March 2025.