Authorized Push Payment Fraud Losses in UK Rise 12%

Authorized push payment (APP) fraud drove an increase in losses to payment fraud and scams in the first half of the year in the United Kingdom.

Losses from APP rose 12% year over year to reach 257.5 million pounds (about $342.5 million) during that period, while losses from unauthorized transactions across payment cards, remote banking and checks declined 3% to 372 million pounds (about $494 million) financial services industry trade group UK Finance said in a Friday (Oct. 24) press release.

In terms of the total number of recorded cases, compared to the first half of 2024, there were 8% fewer APP cases, at 110,747, and 19% more unauthorized transactions, at 1.98 million, according to the release.

Investment scams accounted for the largest portion of losses from APP, as 97.7 million pounds (about $130 million) was stolen through this type of fraud. That was a 55% increase from the previous year. In these scams, criminals convince victims to move money into a fictitious fund or a fake investment.

Other forms of APP fraud include purchase scams, in which victims pay in advance for goods or services that are never received; romance scams, in which victims are tricked into believing they are in a relationship; and the impersonation of police or bank officials.

In the first half of 2025, there was a 10% increase in losses to purchase scams; a 35% increase in losses to romance scams; and a 14% decrease in losses to impersonation scams.

UK Finance said the decline in impersonation scams was due in part to education campaigns.

Most APP fraud begins online or on telecommunications platforms, according to the release. Online cases account for 30% of the value and 66% of the volume of APP fraud, while telecommunications platforms account for 29% of the value and 17% of the volume.

“Despite the ongoing investment and prevention measure by the industry, the majority of fraud originates outside the banking system, online and over the phone, where manipulation begins long before any payment is made,” Ben Donaldson, managing director of economic crime at UK Finance, said in the release.

The PYMNTS Intelligence and The Clearing House collaboration “Reality Check: Fact vs. Fiction in Real-Time Payments Fraud” found that authorized push payment fraud is a top concern among banks when it comes to instant payments, second only to account takeover fraud.