Banks urged to do more as global payment fraud rises

UK banks and payment firms have been urged to strengthen their anti-fraud systems for international payments after a rise in scammers tricking people into sending money abroad.

- Rupert Jones

After years of horror stories about people losing huge sums through bank transfer scams, rules came into force last October requiring UK banks and other payment firms to refund those who have been manipulated into sending money to criminals.

This week, industry data revealed that the number of cases of this type of crime had fallen to its lowest level for five years. The frauds are known as authorised push payment (APP) scams and the number of cases fell by 20% last year to just under 186,000, said the banking body UK Finance, which issued the data. In 2023, there were more than 232,000 cases. The decrease is thought to be down in part to the new rules, plus other initiatives and greater awareness.

But the figures came with some stings in the tail. While cases fell substantially, the amount lost to APP fraud fell by just 2% to £450m. In other words, as UK Finance put it, "fewer people are handing over bigger sums of money".