Authorised Push Payment (APP) fraud, a deceptive practice where individuals are tricked into sending money from their bank accounts to fraudsters, is an increasingly worrying financial crime, yet it seems to be underestimated by consumers, especially in the UK, according to new research from FICO.
The 65+ age group, notably vulnerable to such scams, exhibits the least concern about this type of financial fraud. This underestimation of risk by consumers is alarming given the rising instances of fraudsters targeting victims with elaborate APP scams designed to defraud them out of their pensions and investments, leading to significant financial losses.
Consumer Perception and Demographic Differences
Increasing Cases of APP Fraud
Lack of Consumer Awareness and Need for Effective Communication
The underestimation of Authorised Push Payment fraud by consumers, particularly among the older generations, underscores a critical gap in awareness and understanding of this financial threat. Despite increased cases and the potential for significant losses, there remains a disconnect between the perceived and actual risks of APP fraud. This calls for a concerted effort from financial institutions and regulatory bodies to strengthen consumer education and deploy advanced technological measures to combat this evolving form of fraud. Addressing this challenge is crucial, not only to protect consumers from financial losses but also to maintain the integrity and trustworthiness of payment systems in our digital economies.
JT's Mobile Intelligence division is leading the fight against APP fraud with their innovative Scam Signal product that is helping banks and financial services to better understand and stop Authorised Push Payment fraud.
Stay up to date on how to combat financial fraudJT's Mobile Intelligence division works with banks and financial services across the world to increase the awareness of how fraud is perpetrated and to deploy innovative fraud prevention solutions to combat todays most pervasive types of frauds. For more information on JT’s Mobile Intelligence solutions contact our team of experts today. |