Preventing Authorised Push Payment (APP) scams is one of the Payment Systems Regulator’s (PSR) top priorities. A new report from PSR shows how fraudsters exploit major platforms to scam consumers.

APP scams happen when victims are tricked into sending money to fraudsters posing as legitimate payees. These scams don’t just cause financial losses; they cause emotional harm to consumers, undermine trust in platforms, and damage confidence in UK payments and the economy. 

The PSR’s data shows that in 2023 alone, APP scams cost UK consumers £341 million. Victims report losing trust not only in banks but also in the platforms fraudsters use to contact them - 41% of victims said their trust in social media companies had been shaken, four times as many as those who lost trust in traditional banks. 

In October 2024, the PSR introduced new reimbursement rules, ensuring a world-leading level of protection for UK consumers. These measures not only help victims recover their money but also encourage banks to take action to stop fraud before it happens. However, preventing scams is not just the responsibility of banks - every sector has a role to play. Social media, telecoms, online marketplaces and other platforms must also understand how fraudsters reach victims and take steps to stop them. That’s exactly what today’s report highlights. The PSR considers that sharing data and working together across sectors is key to stopping fraudsters.

Today, the PSR is calling on technology, telecoms, and social media platforms to work with payment firms to close down vulnerabilities that fraudsters exploit.  

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. By publishing this data, we want to drive real change across industries, tackling the root causes of APP scams. Preventing scams before they happen is the best way to protect consumers and reduce harm.” 

What the report reveals 

This year, the PSR used its powers to gather data from 14 of the largest banking groups in Great Britain and Northern Ireland. The report identifies which platforms fraudsters most commonly exploit across different APP scam types, including romance, purchase, and investment scams for example.  

Key findings include:  

  • Fraudsters target major platforms to commit scams: Social media, technology platforms, and telecoms are frequently exploited by scammers, resulting in losses of hundreds of millions of pounds for UK consumers. 
  • Over half of scams involve Meta platforms: In 2023, Meta platforms (Facebook, Instagram, WhatsApp) were linked to 54% of scam incidents (119,338 cases) and 18% of total losses (£62.7 million). That’s roughly £1 in every £5 lost in scams. 
  • Telecoms and emails cause significant losses: Fraudulent calls and texts via telecoms were used in 12% of scam cases (26,975) but accounted for 31.5% of the losses (£107.2 million). Emails, while only involved in 2% of scams, led to disproportionately high losses of £35 million (10% of the total). 
  • Romance scams are more common on Meta platforms: Meta platforms were used in more romance scams (31%) than all dating websites combined. Facebook, Instagram, and WhatsApp together accounted for 1,590 incidents and £5.1 million in losses. 
  • Purchase scams dominate on Facebook: The most common scams in 2023 were purchase scams, where victims buy items that never arrive. Facebook was used in 44% of these cases (67,337 incidents), with losses of £19.5 million—more than any other platform. While eBay saw fewer scams (1.6% of cases), the losses per scam were significant, totalling £6.7 million. 
  • Investment scams cause the biggest losses: Investment scams made up 23% of total losses (£80.3 million) but only 6% of scams (12,500 incidents). Fraudsters often used telecoms (£18.4 million in losses), Meta platforms (£11.6 million), and even friends and family connections (£9.6 million) to deceive victims.

What happens next 

While progress is being made, APP scams remain a serious issue. Greater data sharing and collaboration across industries is essential to stop scams earlier in their lifecycle. Tackling these scams at the source will reduce harm and result in better outcomes for consumers. 

The PSR plans to publish this data annually and intends to consult in 2025 on improving how fraud data is collected. 

ENDS 

Notes to editors:  

  • The PSR’s APP scams data report highlighted that in 2023, £341 million was lost to APP scams in the UK.  
  • UK Finance’s Annual Fraud report 2023 notes that APP scams cost UK consumers £459.7 million. There are minor differences for some scam types in comparison with UK Finance data. This is likely due to the PSR’s data being collected from 14 firms, whereas UK Finance data includes a wider set of PSPs. The PSR’s data also categorises WhatsApp as a ‘social media, messaging and call platform’, whereas industry categorises it as telecoms. 
  • The data collected by the PSR was victim self-reported i.e. when the victim reports to their PSP where they believe the scam started. In some cases, the victim may not remember where the initial compromise happened. In other cases, the consumer may report to their PSP that a scam was enabled on a specific platform, when in fact the fraudster made contact with them earlier and on another platform or service. For example, a victim may tell their PSP that they believe the fraudster persuaded them to make a payment over telecoms, but the point of original contact between the victim and fraudster was on a dating platform or via social media.