Marking International Fraud Awareness Week, the Payment Systems Regulator (PSR) has published research showing the emotional and financial toll of Authorised Push Payment (APP) fraud on UK consumers. With APP fraud losses exceeding £213 million in the first half of this year alone, this week highlights the ongoing need to protect consumers and advance fraud prevention efforts across all sectors.  

The PSR’s survey of over 1,500 UK adults captures the far-reaching impacts of APP fraud, with the most common cases being low-value purchase scams under £200. Almost 1 in 5 fraud victims said their experience left them feeling anxious or depressed, while half reported a diminished trust in others. A third of victims (32%) also said they had lost confidence in using new payment methods, underscoring the lasting effects fraud can have on consumer trust. 

Kate Fitzgerald, the PSR’s Head of Policy, says:  

“This research emphasises the devastating impacts of fraud on consumers’ mental wellbeing and trust. APP fraud isn’t just a financial setback, it affects people’s confidence in payments and can leave them fearful of using digital platforms and retailers in the future.  

“This International Fraud Awareness Week, as we approach big shopping events like Black Friday, it’s crucial for consumers to stay vigilant – but not fearful. That’s why our new protections are so important – now, consumers can feel reassured that if they fall victim to APP fraud despite taking the right precautions, they will be able to get their money back.”  

Key findings of the research include:  

  • Trust in social media platforms shaken: Fraud’s impact goes beyond the payments sector – 41% of victims report a loss of trust in social media companies, four times as many as those who lost trust in traditional banks. This reinforces the need for online marketplaces and social media platforms to take greater responsibility in preventing fraud. 

  • Victims’ top priority is getting their money back: 67% of APP fraud victims report that getting reimbursed for their losses is their top priority. Other key priorities include removing fraudulent content (19%) and investigating the fraud (7%). Reimbursement protects many aspects of social wellbeing and trust – for example, victims that are reimbursed are commonly less likely to have long-term emotional impacts. The research also challenges assumptions that reimbursement leads to complacency; in fact, reimbursed victims report feeling more vigilant about fraud risks, not less.  

The PSR’s actions against fraud: 

  • Mandatory reimbursement: Requirements that came into force on 7 October 2024 ensure that APP fraud victims are consistently reimbursed, incentivising payment firms to prioritise fraud prevention. As part of these rules, both sending and receiving firms share reimbursement costs equally, encouraging them to share intelligence behind the scenes to stop or delay high-risk payments.  

  • Increased transparency through data: The PSR’s annual APP fraud performance data shows consumers how effectively banks handle fraud. Following its recent letter to online, social media and tech firms, the regulator plans to publish new data on the firms most commonly reported by victims as enabling contact between fraudsters and victims. This transparency will provide better data insights to support all sectors, and incentivise action from non-payment sectors to tackle fraud at its source. 

  • Name checking to prevent APP scams and misdirected payments: The PSR has taken action to ensure the widespread rollout of anti-fraud tools like Confirmation of Payee, now covering over 99% of UK payments.  

You can find the PSR’s full research findings here.