Forty per cent of Brits who have fallen victim to fraud or scams in the last year haven’t been able to recover the money lost as a result, a new survey has revealed.
Through the survey, Pay by Bank provider Yaspa says it aims to highlight the need for more fraud-resistant payment methods, revealing that consumers lose an average of £765 to scams — with only 34 per cent of lost funds recovered on average.
In the last 12 months, 16 per cent of Brits who have experienced fraud or scams have lost between £250 and £500, while one in 10 have lost between £500 and £1000. Survey data revealed that the average financial loss for men was £943 – significantly higher than women, whose average came in at £476.
The survey found that 35 per cent of respondents were victims of fraud in the last 12 months – an estimated equivalent of around 17.5 million people. Fifty-four per cent of Brits said they believe it is easier to scam people today than five years ago, compared to just 19 per cent of respondents who disagreed and felt it is harder to do so, while 70 per cent of respondents said they are concerned about them or a loved one becoming a victim of fraud in the next 12 months.
According to the survey, it was online mediums that ranked the highest for the ‘most common’ occurrences of fraudulent activity, with online shopping scams, phishing emails, and Facebook Marketplace scams considered the most common according to respondents.
Investment scams, AI or deep fake scams, and unlicensed gambling operators also ranked highly, with 24 per cent of Brits stating they believe ticket buying for concerts and sporting events is the most common platform for fraudulent activity or scams.
What’s the solution?
When asked if the government and its agencies were doing enough to protect consumers from fraudulent activity, nearly 40 per cent didn’t agree. Forty-nine per cent shared that the primary responsibility for protecting consumers sits with the government, while 44 per cent felt it should be the responsibility of banks and financial institutions. Thirty-eight per cent believed responsibility should sit with the police, 37 per cent said technology and social media companies, while 26 per cent felt it lay with the individual.
Amie Kadhim, head of commercial at Yaspa, says that Pay by Bank could help reduce the risk of fraud for consumers. She explains: “Push payment fraud is one of the most damaging types of fraud today – and once the money’s gone, it’s rarely recovered. Scammers exploit the trust people place in bank transfers, highlighting the urgent need for better safeguards.
“With a background in card acquiring, I’ve seen how Pay by Bank offers a more secure alternative. Open banking, the technology behind it, moves money directly between accounts using strong customer authentication, without exposing sensitive card details or leaving gaps for fraudsters.
“With a third of respondents saying technology for fraud detection could be the best way to protect consumers against scams, other technological innovations in the payments sector could also be effective in fighting against these crimes. As fraud tactics evolve, we must stay ahead with smarter and more secure technology – and help consumers understand which payment methods truly offer better protection. Pay by Bank does exactly that.”
