As we approach the midpoint of 2025, the fraud figures for 2024 provide critical insights into the state of financial security in the UK and offer a stark warning for the year ahead. The total fraud losses for 2024 amounted to a staggering £1.17 billion, with both authorised push payment (APP) and unauthorised fraud demonstrating concerning trends. These figures not only highlight the persistent threats within the financial ecosystem but also set the stage for what could unfold in the near future if the sector doesn’t adapt swiftly.
APP fraud, which occurs when individuals are tricked into authorising payments to fraudsters, saw a slight decrease in losses, dropping to £450 million. While this reduction may seem positive on the surface, the drop is not as significant as many had hoped, especially given the growing sophistication of scam tactics. Conversely, unauthorised fraud losses, driven by criminal activity involving stolen card details, skyrocketed to £722 million—an increase that signals deeper, systemic vulnerabilities within payment systems.
A notable trend for 2024 was the 14% rise in unauthorised fraud cases, which totaled 3.13 million. The bulk of these cases involved remote purchase frauds, where fraudsters used stolen details to make purchases online. This trend is troubling as it reflects an ongoing shift towards more impersonal, online-based scams, making it easier for criminals to target a wider range of victims without physical proximity. The remote purchase fraud cases alone grew by 22%, underlining how the digital landscape is being exploited by criminals in increasingly sophisticated ways.
Another key trend in 2024 was the rise in international APP frauds, which are notably excluded from new reimbursement rules. This has left a significant gap in consumer protection, highlighting the need for more robust cross-border regulations to prevent fraud from spreading beyond national borders. Despite an overall 20% decrease in APP fraud cases, the rise of international scams, often involving complex networks and higher stakes, suggests a looming challenge for financial institutions in the coming months.
Looking forward, the data from 2024 paints a worrying picture for 2025. The rapid growth in unauthorised fraud, particularly via remote purchase, coupled with the rise in international scams, suggests that fraudsters will continue to find new avenues to exploit consumers. The question now is how financial institutions, telecom companies, and tech giants will respond to these threats. There is an urgent need for enhanced preventative measures, better cross-industry collaboration, and stronger regulatory frameworks to safeguard consumers from these evolving threats.
