Research: young people to fall victim for APP fraud

Friday 2 February 2024 08:53 CET | News

New research from Visa, world provider of digital payments and card issuer, has revealed the negative impact of authorised push payment (APP) fraud on UK consumers. 

Key findings of the survey

According to new research released by UK Finance, one in three consumers fall victim and one in five people report decreased confidence in digital banking due to fraud threats. The same report conducted by Visa and Mintel stated that more than 33% of consumers have fallen victim to an APPP scam, while 53% mentioning that spotting signs of APP fraud has increasingly become harder.  Moreover, the past five years have proven difficult, with social media and other instant messaging services increasingly becoming customer targets with a 17% increase in social media scams.

Researching and learning more about past social media scams has prompted end-users to become less vulnerable against online scammers. But, even though more than 35% of victims are less open to sending money to new people, over 64% of people survived mentioned that banks should be the ones able to detect APP scams, without slowing down instant bank transfers. Furthermore, decreased confidence in digital banking was noticed at 19% of the users, while a third of the UK users reported their mental health suffered as a result of APP fraud.

New research from Visa, world provider of digital payments and card issuer, has revealed the negative impact of authorised push payment (APP) fraud on UK consumers.  

Calling for cross-industry collaboration

Almost half of the interviewed users claim they feel at risk of falling for scams again, which prompted Visa to call for cross-industry collaboration to fight fraud and scams. The company’s main focus is on prevention – how to stop the money from leaving victims’ bank accounts. To boost consumers’ financial trust, Visa provides tips and professional advice for preventing fraud, as well as what to do if users fall victims of fraud:

  • Identity validation. Scammers have become more professional when impersonating banks or trusted organisations, which makes them more difficult to spot by an untrained eye. If you are not sure about the true identity of a caller, try using another form of communication than the one used by them to initiate a conversation. For instance, if you get a text message from someone asking for bank information, try calling the bank directly to make sure they were the ones asking.

  • Stop and think things through. Do not rush a payment, as a legitimate organisation will not put pressure on you to rush. If you are unsure, talk to someone you trust. Phishing remains extremely popular so there is a chance that person received a similar call/ text. 

If, however, you fall victim to a scam, you must understand that this is more common that you think, so you re not alone. Reach out for support and advice from your bank and from others who were in similar situations. Working collectively, we can stop this phenomenon from spreading even more.  

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Keywords: research, survey, APP fraud, fraud detection, online fraud, fraud prevention, Account fraud, identity verification, digital identity, scam, phishing
Categories: Fraud & Financial Crime
Companies: Visa
Countries: United Kingdom
This article is part of category

Fraud & Financial Crime


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