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Britons lost £1.17 billion to financial fraud and scams last year, according to UK Finance. While the total amount lost stayed the same as the year before, the number of fraud cases went up by 12 percent. This brought the total to a record 3.31 million reported incidents.
UK Finance said the increase came mainly from stolen card details used for online shopping. In many cases, fraudsters tricked cardholders into sharing their one-time passcodes. These codes allowed purchases without the account holder’s knowledge or consent.
Over 98% Of Affected Users Got Full Refunds Due To Legal Protections
According to the update, remote purchase frauds rose by 22 percent, reaching nearly 2.6 million cases last year. Losses from this type of scam climbed to about £400 million, an 11 percent increase. The firm said more than 98 percent of those affected received full refunds due to legal protections.
Authorized push payment (APP) fraud, where funds are sent directly to criminals after deception, declined by about 20 percent. There were 186,000 reported cases last year, the lowest since 2020. UK Finance said this drop shows some progress in prevention.
Even with fewer cases, APP fraud still led to £450 million in losses. Investment scams remained the largest part of this, costing £144.4 million. UK Finance said this type of fraud increased by 34 percent in value, even though the number of cases fell.
International transfers played a bigger role in APP fraud last year. These types of payments made up 11 percent of APP scams, up from 6 percent the year before. Criminals are using cross-border methods more often to avoid detection.
New Rules Require Banks To Repay Victims Of APP Fraud Up To £85,000
New rules from the Payment Systems Regulator require banks to repay victims of APP fraud. The standard reimbursement cap is £85,000, though banks may choose to go beyond that. These rules aim to limit financial harm from tricked transfers.
UK Finance said banks returned £267.1 million to victims of APP fraud last year. This shows the system is helping people recover some of their losses, even though stopping fraud remains a challenge.
Ben Donaldson, Managing Director of Economic Crime at UK Finance, revealed that the financial industry is working hard to protect customers. “Fraudsters are always looking for new ways to trick people,” he said, stressing the need to stay alert and improve defenses.
Donaldson also said tackling fraud requires stronger cooperation between government and businesses. He added that using data and intelligence better will help stop criminals more effectively.
UK Finance said as fraudsters keep changing their tactics, working together and staying one step ahead will be vital. Protecting people from scams will require ongoing effort and new ideas to keep fraud under control.
