Fraud remains a persistent threat to the UK’s financial system, with criminals stealing £1.17 billion in 2024 through a combination of unauthorised and authorised scams. While this figure is largely unchanged from 2023, it highlights the ongoing challenge faced by banks, law enforcement, and the wider tech and telecoms sectors in tackling organised financial crime.
In its latest annual fraud report, UK Finance revealed a worrying rise in certain types of scams, despite continued progress in fraud prevention and growing consumer awareness.
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Overview
In 2024, over £1.17 billion was lost to fraud — with £722 million coming from unauthorised transactions and £450.7 million from authorised push payment (APP) fraud. At the same time, banks prevented £1.45 billion in fraud attempts through advanced systems, up 16 per cent from the previous year.
Ben Donaldson, Managing Director of Economic Crime at UK Finance, said the scale of fraud is “causing serious harm to individuals, society and the economy,” pointing to organised crime as the primary beneficiary of stolen funds.
There were 3.13 million confirmed unauthorised fraud cases in 2024 — a 14 per cent rise from 2023 — resulting in £722 million in losses. The main driver of this increase was remote purchase fraud, where criminals use stolen card details to shop online or by phone.
- Remote purchase fraud losses rose 11 per cent to just under £400 million, with case numbers increasing 22 per cent.
- Card ID theft saw a significant drop, with losses falling 26 per cent to £58.7 million.
- Contactless fraud also declined slightly, by one per cent — the first decrease since 2020.
- Remote banking fraud dropped 7 per cent in losses and 17 per cent in case volume.
Despite the increase in certain fraud types, banks successfully blocked 67p in every £1 of attempted unauthorised fraud — a notable improvement in prevention efforts.
APP Fraud
Authorised Push Payment (APP) fraud, where victims are tricked into sending money to fraudsters, led to £450.7 million in losses, a two per cent decrease from 2023. Of this:
- £365.7 million was stolen from personal accounts.
- £84.9 million from non-personal accounts (e.g. businesses).
Interestingly, the number of APP fraud cases fell 20 per cent to under 186,000, the lowest level since 2020. This is partly thanks to better technology and public awareness campaigns.
But not all trends were positive:
- Investment scams saw losses rise 34 per cent to £144.4 million, despite fewer cases.
- Purchase scams remained the most common form, with losses rising slightly to £87.1 million.
- Impersonation frauds, where scammers pretend to be from a bank or the police, saw losses drop 16 per cent and cases fall by 32 per cent.
- International APP fraud surged, with 11 per cent of losses involving cross-border payments — up from six per cent in 2023.
Reimbursement
Victims of unauthorised fraud remain well protected, with over 98 per cent of losses reimbursed by banks.
For APP fraud, reimbursement has historically been inconsistent. However, in October 2024, the Payment Systems Regulator (PSR) introduced new reimbursement rules. Under these rules:
- £267.1 million (59 per cent of all APP losses) was reimbursed during 2024.
- Between October and December 2024, banks returned 86 per cent of funds stolen through APP fraud under the new framework.
It’s worth noting that UK Finance’s figures cover a broader range of fraud types than those in the PSR rules, so the two sets of data aren’t directly comparable.
Online Platforms
A majority of APP fraud originates online, according to UK Finance:
- 70 per cent of APP fraud cases began on online platforms.
- Telecom-based fraud made up a smaller share of cases but led to a larger share of financial losses, suggesting fraud through telecoms is often more severe.
UK Finance and BioCatch both stressed that more action is needed from the tech and telecom sectors, calling for improved platform safety and data-sharing to stop scams before they happen.
Gadi Mazor, CEO of BioCatch, said fraud must now be seen as a systemic issue and called for real-time cooperation between banks, regulators, and digital platforms to reduce the billions lost each year.
Fraud in the UK remains at crisis levels. Despite progress in prevention and refund policies, criminals continue to adapt, shifting tactics to exploit gaps in digital security. As organised fraudsters increasingly abuse online platforms and telecommunications, collaboration between the finance sector, tech industry, and regulators will be essential to protect consumers and reduce losses in 2025 and beyond.
FAQs
How much was lost to fraud in 2024?
£1.17 billion was lost to unauthorised and APP fraud in 2024.
What is the most common type of fraud?
Remote purchase fraud was the most common, with 2.6 million cases.
Are victims reimbursed for fraud losses?
Yes, 98% of unauthorised and 59% of APP fraud losses were reimbursed.
Where does most APP fraud begin?
70% of APP fraud cases start on online platforms.
What’s being done to fight fraud?
Banks, regulators, and tech companies are investing in security and awareness.
