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Authorised push cost (APP) scams value UK shoppers £341 million final yr, with social media platforms utilized by fraudsters to hold out greater than half of the quantity of incidents, in accordance with figures from a regulator.
APP scams occur when somebody is tricked into transferring cash to a fraudster.
The Payment Systems Regulator (PSR) stated that in 2023, social media, messaging and name platforms have been focused by criminals to hold out 56% of APP scams (124,057 incidents), accounting for round one fifth of the worth misplaced (£67,429,184).
Auction – or buy – and itemizing platforms have been focused by fraudsters to hold out incidents accounting for six% of the overall loss worth.
Telecommunications platforms have been used to hold out a major quantity of APP scams through fraudulent calls and textual content messages, with fraudsters utilizing these strategies accounting for 31% of the worth misplaced, at £107.2 million.
Preventing scams earlier than they occur is the easiest way to guard shoppers and cut back hurt
Kate Fitzgerald, PSR
Email suppliers have been additionally focused by fraudsters to hold out 10% of losses by worth, at £35 million, though these solely accounted for two% of the quantity of incidents.
In October 2024, the PSR launched necessary fraud reimbursement guidelines for banks.
Previously, many banks had signed as much as a voluntary reimbursement code.
Kate Fitzgerald, the PSR’s head of coverage, stated: “Our report highlights how main platforms are being exploited by fraudsters to deceive victims, typically with devastating results…
“Preventing scams earlier than they occur is the easiest way to guard shoppers and cut back hurt.”
The evaluation indicated that buy scams are the most typical kind of APP scams within the UK, making up 68% of instances in 2023 (152,192 incidents).
Impersonation scams made up 14% (31,321 incidents) and advance charge scams, the third most typical, made up 9%, with 19,341 incidents.
The PSR has been utilizing its powers to assemble information from main banking teams.
Ben Donaldson, managing director of financial crime at UK Finance, stated: “This new report from the Payment Systems Regulator reiterates what we have now lengthy been saying – that criminals are exploiting on-line platforms and telecommunications to commit fraud.”
He added: “It is simply by stopping fraud within the first place that we’ll shield shoppers and society from the hurt this crime causes.”
Rocio Concha, Which? director of coverage and advocacy, stated: “Fraud continues to trigger its victims distress and, as this analysis exhibits, scammers are efficiently exploiting social media platforms and telecoms corporations to focus on shoppers.”
