More than four in ten Britons who fall victim to scams never recover their money, according to new research from open banking payment provider Yaspa.
The findings expose the severity of fraud in the UK, revealing that just 19% of victims were able to reclaim the full amount they lost, while the average recovery rate stood at a modest 34%.
The study found that the average amount lost to fraud or scams was £765. A significant proportion of victims (16%) reported losing between £250 and £500, while 1 in 10 said they had lost between £500 and £1,000. Alarmingly, men were hit harder than women, with average losses of £943 compared to £476, respectively.
Regionally, the financial impact varied widely. Northern Ireland topped the list with an average fraud loss of £2,290, followed by the North East at £1,337, Wales at £1,285, and Greater London at £1,151.
Online shopping emerged as the most commonly cited source of scams, named by 15% of respondents. This was followed by phishing emails and Facebook Marketplace at 12% each, with investment platforms and phone scams each mentioned by 10%.
Yaspa head of external affairs Amie Kadhim said, “Push payment fraud is one of the most damaging types of fraud today – and once the money’s gone, it’s rarely recovered. Scammers exploit the trust people place in bank transfers, highlighting the urgent need for better safeguards.
“With a background in card acquiring, I’ve seen how Pay by Bank offers a more secure alternative. Open banking moves money directly between accounts using strong customer authentication, without exposing sensitive card details or leaving gaps for fraudsters.
“As fraud tactics evolve, we must stay ahead with smarter technology – and help consumers understand which payment methods truly offer better protection. Pay by Bank does exactly that.”
Despite the rising threat, 75% of respondents claimed to feel confident in identifying scams. However, the research suggests that even those who consider themselves vigilant may still fall prey, especially with scammers leveraging new technologies like artificial intelligence. Around 37% of those surveyed cited AI-driven deepfakes – including fake voices, images, and videos – as one of the most dangerous developments in modern fraud.
Scams involving concert and sports tickets were also a concern for 23% of respondents, particularly following high-profile events such as the Oasis reunion tour. Meanwhile, unlicensed gambling platforms were flagged by 10% as common fraud hotspots.
Award-winning journalist and consumer rights expert Martyn James offered practical tips for avoiding scams. He advised people to be sceptical of anything that can be faked, such as websites and phone numbers, and to verify suspicious messages via official channels. He also urged the public to be cautious of emotionally manipulative tactics, and to act quickly if fraud is suspected.
James highlighted two specific scam types to watch for: push payment fraud and conveyancing fraud, which involves criminals intercepting large money transfers by hacking email chains related to property purchases.
The findings add to growing calls for improved consumer protections and more secure payment technologies, with open banking solutions like Yaspa’s Pay by Bank platform being positioned as part of the answer.
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