Britain recorded a sharp increase in financial fraud cases in 2024, with a record 3.31 million incidents reported, a 12% rise from the previous year, according to new data released by UK Finance.
According to Finance Magnates, despite this jump, the total financial losses remained largely unchanged year-on-year at £1.17bn, highlighting an evolving fraud landscape that is shifting in nature but not scale.
Much of the increase in fraud was driven by a surge in remote purchase fraud, which involves the use of stolen bank card details to make online purchases. These cases jumped 22% to nearly 2.6 million last year, resulting in losses of approximately £400m, an 11% increase from 2023. Fraudsters are increasingly deceiving victims into revealing one-time passcodes, further enabling such scams. However, due to strong legal protections, over 98% of victims in these cases were refunded in full.
In contrast, authorised push payment (APP) fraud—a type of scam in which victims are tricked into transferring money directly to criminals—declined by 20%, reaching its lowest level since 2020. There were approximately 186,000 APP fraud cases recorded in 2024, with overall losses totalling £450m, down 2% from the previous year.
While the total number of APP fraud cases fell, losses tied specifically to investment scams soared. These scams, which entice individuals with fake schemes promising high returns, resulted in a 34% increase in financial damage, totalling £144.4m, despite a drop in the number of victims.
UK Finance also highlighted a growing trend of cross-border payments linked to APP fraud, with international transfers accounting for 11% of such fraud in 2024, up from 6% the year before. Under the Payment Systems Regulator’s new guidelines, victims of APP fraud are eligible for reimbursement of up to £85,000, though some banks may choose to return more. In 2024, £267.1m in APP-related losses was returned to consumers under these protections.
UK Finance managing director of economic crime Ben Donaldson said, “The financial services industry works tirelessly to protect customers and prevent billions more being stolen by fraudsters, but we know that criminals are always looking for new ways to exploit victims.”
Donaldson added, “To deal with this threat, we need a more proactive approach, with the public and private sectors working more closely together and using data and intelligence more effectively.”
The report underscores the critical role of collaboration between financial institutions, regulators, and government in countering increasingly sophisticated fraud tactics.
Elsewhere, the Consumer Financial Protection Bureau (CFPB) is facing strong criticism from the Financial Technology Association (FTA) after revealing plans to rescind its landmark open banking rule, known as the 1033 rule.
The move, widely seen as a concession to traditional banks, has sparked accusations that regulators are undermining consumer financial rights and protecting entrenched financial interests, claims Finextra.
The 1033 rule, finalised just last October, was designed to give Americans the right to instruct their banks to share financial data with third-party providers. It was a significant step forward for open banking in the US, potentially increasing competition and innovation in financial services. However, opposition from major banks and traditional financial institutions, who raised concerns about liability risks and data access costs, has led to growing political pressure to roll back the regulation.
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