Authorised push payment fraud continues to plague UK consumers and businesses, with losses climbing to £341 million in the first half of 2025, according to the latest figures from UK Finance. The data reveals a 14 per cent increase compared to the same period last year, driven largely by sophisticated social engineering tactics that exploit trust in legitimate institutions. Purchase scams and investment fraud remain the two largest categories, together accounting for nearly 60 per cent of all reported cases.

The Payment Systems Regulator's mandatory reimbursement framework, which came into force in October 2024, was intended to shift more liability onto banks and payment firms. However, consumer groups argue that enforcement has been patchy, with some firms interpreting the rules narrowly to limit payouts. "We are still seeing too many victims left without recourse," said Rocio Concha, director of policy at Which?. "The PSR needs to ensure that all payment providers are meeting both the letter and spirit of the new rules."

Major banks including Barclays, HSBC, and Lloyds have responded by investing heavily in real-time fraud detection systems and expanding their use of behavioural analytics to flag suspicious transactions before they are completed. NatWest reported that its AI-driven intervention tools prevented an estimated £120 million in fraud losses during the first quarter alone. Industry observers expect the PSR to publish updated guidance by autumn 2025, potentially tightening the criteria that firms can use to deny reimbursement claims.