CashNews.co
UK Finance has released its Half Year Fraud Report for 2024, outlining trends in payment fraud and scams reported by its members during the first half of the year.
Criminals stole GBP 571.7 million through both unauthorised and authorised fraud, marking a 1.5% decrease compared to the same period in 2023. Banks prevented GBP 710.9 million in unauthorised fraud due to advanced security systems.
The report highlighted that 72% of authorised push payment (APP) fraud originated online, while 16% was traced back to telecommunications networks. The financial services sector remains actively engaged in efforts to combat fraud, working alongside other industries, government, and law enforcement to disrupt criminal activity and bring offenders to justice.
In terms of unauthorised fraud, losses reached GBP 358 million in the first half of 2024, up 5% from the previous year, with over 1.5 million cases recorded – an increase of 19%. A significant driver of this rise was a 26% increase in card-not-present fraud cases. However, instances of card ID theft saw a decline, with losses falling by 12% to GBP 29.3 million. UK Finance noted that 98% of victims of unauthorised fraud were fully refunded.
Decline in authorised push payment (APP) fraud
Authorised push payment fraud losses amounted to GBP 213.7 million, a decrease of 11% compared to the first half of 2023. Personal losses accounted for GBP 166.5 million, while business losses totalled GBP 47.2 million. The number of APP cases dropped by 16%, with reductions across all categories, including purchase scams, romance scams, and investment scams. Notably, losses from impersonation fraud, where criminals pose as a bank or police to convince victims to transfer money, fell by 26%.
UK Finance also reported that GBP 126.7 million, or 59% of the total APP losses, was returned to victims in the first half of 2024. The report emphasised that fraud continues to be facilitated by the misuse of online platforms and telecommunications, with criminals using social engineering tactics to obtain personal information for financial gain.New reimbursement rules introduced by the Payment Systems Regulator in October aim to strengthen protections for victims of APP fraud.