Four in 10 Brits never recover money lost after falling victim to scams

Finextra

4 hours ago

40% of Brits who have been victims of frauds or scams in the last year haven't been able to recover the money lost as a result, highlighting the urgent need for fraud-resistant payment methods, a new survey has revealed.
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As open banking emerges as a viable safeguard for merchants and financial institutions, research from Pay by Bank provider Yaspa shows consumers lose £765 on average to scams, with the average percentage of lost funds recovered sitting at 34%.
In the last 12 months, 16% of Brits who have experienced fraud or scams have lost between £250 and £500, while 1 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.
Younger people lost less on average, with 16-24 year olds losing an average of £284 in scams and fraudulent activity, while all other age groups lost between £750 and £900 on average. This could be in part due to younger people being more technologically savvy than their older counterparts, or that they would have less disposable income to part with.
Financial losses were also higher in Northern Ireland, with the average amount of money lost due to fraud in the last 12 months being £2290, followed by the North East at £1337, Wales at £1285 and Greater London at £1151.
The nationally representative survey found 35% of respondents were a victim of fraud in the last 12 months - an estimated equivalent of around 17.5 million people. Over half of Brits (54%) said they believe it is easier to scam people today than 5 years ago, compared to just 19% of respondents who disagreed and felt it is harder to do so, while 70% 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 nearly a quarter of Brits (24%) stating they believe ticket buying for concerts and sporting events is the most common platform for fraudulent activity or scams.
When asked if the government and its agencies were doing enough to protect consumers from fraudulent activity, nearly 40% didn't agree. Almost 1 in 2 (49%) shared that the primary responsibility for protecting consumers sits with the government, while 44% felt it should be the responsibility of banks and financial institutions. Just over a third (38%) believed responsibility should sit with the police, 37% said technology and social media companies, while 26% felt it lay with the individual.
Nearly a third of those surveyed (33%) shared they felt the solution to tackle fraudulent activity was in improved technology for better detection.
Highlighting Pay by Bank as an alternative technology to reduce the risk of financial loss as a result of fraud, Amie Kadhim from Yaspa shares: '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.'