APP Fraud Spirals Upwards in UK
In the first half of 2021, APP fraud losses stood at £355.3m, an increase of 71 percent. This is the first time that losses to APP fraud have overtaken losses to card fraud in the UK.
APP fraud happens when a person or business is tricked into sending money to a fraudster who poses as a genuine payee.
“Fraudsters are increasingly exploiting a known weakness in the UK banking system where names are not systematically checked against bank account details,” said Ed Adshead-Grant, general manager at Bottomline Technologies, a business payments platform.
The remote working environment created by COVID-19 has led to a sharp increase in impersonations, he continued.
With online retail growing, purchase scams were the most common form of APP fraud, accounting for almost half of aIIAPP cases.
Impersonation scams also saw losses amounting to E129.3m — up 123 percent —as criminals posed as delivery companies, the NHS and government departments by sending out scam texts and emails.
The latest figures show the sheer scale of fraud taking place in the UK and highlight clearly the need for coordinated action to address this threat, said Katy Worobec, managing director of economic crime at UK Finance.
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