70% of APP scam cases start online, UK Finance study reveals

Seven in 10 (70%) authorised push payment (APP) scam cases originate on an online platform, according to new research from UK Finance.

The banking body analysed 7,000 cases of the scam and suggested the figure highlights the internet’s significant role in enabling fraud.

UK Finance’s research also showed that most investment (96%), romance (96%) and nearly all purchase (98%) scams have originated online.

The money lost to APP scams totalled £479m in 2020, with proceeds often funding organised criminal activities. Last year also saw a jump in online-enabled push payment or bank transfer fraud with the research highlighting increases in investment (32%), romance (38%) and purchase scams (7%).

Impersonation scams, which have also grown significantly in recent months, were the only scams solely initiated via telephone calls and text messaging.

The analysis comes as the government published its draft Online Safety Bill this week, which will tackle fraudulent investment schemes posted by users on social media, but will not include the same scam when digitally advertised or set up through a cloned website.

UK Finance chief executive, David Postings, commented: “As more of us have shifted online because of the pandemic, we’ve seen a spike in money mule activity and investment and purchase scams because criminals can target people directly in their homes across online platforms.

“We were pleased to hear that the upcoming Online Safety Bill will tackle some aspects of fraud, but it won’t protect people from fraudsters’ online adverts and cloned websites.

“We encourage government to include all economic crime within the Bill when it is formally introduced. Not doing so leaves a large proportion of the public at high risk of being scammed online, because criminals are experts in adapting their tactics to exploit any loopholes.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.