• APP fraud is rife across the UK, with 1 in 3 consumers falling victim and over half (53%) saying it’s getting harder to spot the signs.[1]
• New research from Visa has revealed the impact of APP fraud on financial confidence, with over a third (35%) of victims less open to sending money to new people and one in five suffering decreased confidence in digital banking.
• Visa is calling for cross-industry collaboration and a focus on preventing fraud before it takes place in order to protect consumers.
London, 31 January 2024 – New research from Visa, a world leader in digital payments, reveals the negative impact of authorised push payment (APP) fraud on UK consumers beyond the financial loss.[2]
APP fraud occurs when someone is tricked into transferring money to a fraudster posing as a genuine payee. Total losses due to APP scams exceeded £239 million in the first half of 2023 according to UK Finance, and 1 in 3 of those surveyed by Visa reported having fallen victim to APP fraud.
Visa’s latest whitepaper, ‘The Impact of APP Scams’, explores the victim experience and demonstrates the impact APP fraud can have on money management, financial confidence, and personal wellbeing.
The research found that:
• Whilst nearly three fifths of UK consumers (58%) are confident in managing their finances, falling victim to an APP scam can change money management habits.
• Almost a fifth (19%) of those surveyed that have fallen victim to an APP scam say that the scam has decreased their confidence in digital banking.
• More than a third (35%) say it had a negative impact on their openness to paying new payees.
• In addition, 1 in 3 of those surveyed reported that their mental health suffered as a result of APP fraud, and almost half (45%) feel at risk of falling for the scam again.
Visa is calling for cross-industry collaboration to fight fraud, with an increased focus on prevention measures – stopping the money leaving victims’ bank accounts and ending up in the hands of criminals.
Mandy Lamb, Managing Director, UK&I said “Falling victim to a scam can be incredibly distressing. Our research shows that even with all the security measures introduced by banks, fraud can have a devastating impact on people’s ability to manage their finances, even when they get their money back.
“Once fraud happens, the money is in the hands of the criminals, and both consumers and the economy are penalised with loss of savings, income and taxes. Fraud prevention must be our collective goal and cross-industry collaboration to stop fraud at the source will be crucial to achieving this. We are bringing our AI capabilities to fight fraud before it happens – keeping people and businesses safe from scammers is the biggest priority for Visa.”
To help consumers’ financial confidence, Visa is offering tips and advice for preventing fraud and what to do you if you think you’ve fallen victim.
Visa’s top tips for preventing fraud:
• Validate they are who they say they are – it can be hard to tell the difference between legitimate organisation and sophisticated scammers. If you are unsure, you can check by using a different form of communication to the one they have used to reach you. For example, if you get a text asking for bank information, try phoning the company directly to check if it’s a true request.
• Be wary of unexpected contact – cold calls or unexpected emails should raise your suspicions. Remember, it is highly unusual for legitimate organisations to ask for sensitive information or personal details with no prior warning so don’t respond without confirming validity.
• Stop and think – always take the time to consider whether a payee is genuine. Don’t feel pressured to rush a payment, as a legitimate organisation will not put pressure on you to rush. If you’re unsure, talk it through with someone you trust. They may have received a similar message and might be able to help advise on the best course of action.
And if you do fall for a scam, Visa recommends the steps you can take to regain your confidence.
• Recognise that you are not alone – unfortunately, it is not uncommon to fall victim to APP scams. Talking about your experiences with friends and family can help alleviate feelings of guilt and encourage you to rebuild your confidence.
• Reach out for support and advice – please contact your bank if you think you might have fallen victim to APP fraud. They will be able to provide expert help and advice, and are working round the clock on fraud prevention. In addition, resources such as Action Fraud and Victim Support can provide help after crime. These organisations gives free and confidential support and are open 24 hours a day, seven days a week, 365 days a year.
Notes to Editors
About Visa Inc.
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.
About the research:
Between 28 April and 12 May 2023, Visa commissioned research among 2,000 UK internet users aged 18+ to understand the awareness, understanding and perception of APP scams among consumers in the UK as well as a detailed view of the victim experience.
It is important to note that the data in this report, including figures related to victim counts and losses, originates from self-reported victims of APP Scams. Some of these individuals may not have officially reported the scam to their bank or relevant financial authorities. Consequently, there might be discrepancies between the statistics presented here and industry reports, which typically rely on data from cases directly identified or reported to banks.
Disclaimer:
Case studies, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. does not make any warranty or representation as to the completeness or accuracy of the Information within this document, nor assume any liability or responsibility that may result from reliance on such Information. The Information contained herein is not intended as legal advice, and readers are encouraged to seek the advice of a competent legal professional where such advice is required.
[1] Research commissioned by Visa Europe and conducted by Mintel which surveyed over 2000 UK consumers aged 18+ and above, between 28 April 2023 and 12 May 2023.
[2] Research commissioned by Visa Europe and conducted by Mintel which surveyed over 2000 UK consumers aged 18+ and above, between 28 April 2023 and 12 May 2023.
