It was revealed that over a quarter of adults who have been scammed in the UK chose to remain quiet about their experiences, with 60% of victims admitting to feeling embarrassed.
New findings reveal that of 2,000 known victims of fraudulent activity, almost half were tricked into handing over an average of £481 per person. Marketplace and impersonation scams appeared to be the most common amongst those surveyed, however, 47% admitted to feeling most embarrassed about romance scams.
In another study conducted by the government on the experiences of victims of fraud and cybercrime, it was revealed that 56% of respondents felt not only embarrassed but admitted to feelings of shame and self-blame over the situation. Both studies demonstrate the devastating effects of Authorised Push Payment (APP) fraud, currently the most common fraud in the UK.
What is APP fraud?
+ −Authorised Push Payment fraud (APP fraud), uses social engineering tactics and impersonation to trick victims into transferring money, usually via banking apps. There are different types of APP fraud, including romance scams, where victims are tricked into fake relationships and investment scams, such as fake crypto scams promising high returns that never materialise. Other APP fraud scams include employment scams, gold scams and conveyancing scams.
APP scams commonly involve a fraudster impersonating a trusted individual such as a lawyer, policeman, accountant or business associate, or a romantic partner or friend. Fraudsters who use deceit will convince victims to transfer money urgently or on a regular basis. Once a victim realises what has happened, embarrassment and shame often keep them from reporting the crime.
Should I feel embarrassed if I am a victim of fraud?
+ −You should never feel embarrassed or ashamed, although it is an understandable and natural reaction to deceit and manipulation. Fraud is on the rise, and it is incredibly common within the UK. With the rise of AI technology, identifying scams is becoming increasingly complex and the financial industry needs to stay one step ahead of the scammers to protect you and your money.
What has been done to tackle the stigma of fraud?
+ −In response to increasing fraud rates, international money transfer app Wise has partnered with fraud prevention organisation We Fight Fraud to launch the ‘Scam Safe Space’. The initiative aims to educate people about the signs of fraud, encouraging those contacted to stop, challenge and protect their money by reporting any scams to Action Fraud, the national fraud and cybercrime reporting centre.
Additionally, in October 2024, the Payment Systems Regulator (PSR), an independent regulator of systems introduced the Authorised Push Payment Reimbursement Scheme as part of their wider strategy to tackle fraud. This scheme enforces a mandatory reimbursement within five working days, though not all cases of APP fraud are eligible and refunds are capped at £85,000.
What should I do if I have been scammed?
+ −If you think you are a victim of APP fraud, no matter what kind, please do not be afraid to come forward.
Firstly, you should report the scam to your bank, the police, and Action Fraud immediately.
Your bank will investigate your situation and decide whether your case qualifies as APP fraud. If this is the case, you may be entitled to a refund. However not all cases fall within the new reimbursement scheme.
If you believe you qualify for reimbursement due to being a victim of an APP scam and your bank refuses to provide a refund, or you disagree with their decision, you may be able to file a complaint with the Financial Ombudsman Service (FOS). FOS is an independent government-backed body that resolves disputes between consumers and financial institutions.
TLW Solicitors' View
+ −Sarah Spruce, Legal Director at TLW Solicitors, said:
“The embarrassment and shame that fraud victims feel, whilst understandable, is a barrier we are working on with clients to break down.
The perceived stigma that surrounds being an APP fraud victim plays into the hands of the fraudsters who steal money from hundreds of thousands of Brits year after year, and we must do more to remove it. The most important thing we can do is report criminal activity to Action Fraud, financial institutions, and the police, so lost money can be recovered, and the criminals can be stopped in their tracks.
For those who encounter disputes with their bank in what is already an emotionally difficult situation, we are here to help. Our team are experts in progressing APP fraud claims with the Ombudsman. If you need additional advice in recovering money lost to scammers, get in touch for a no obligation and confidential discussion to see if you are eligible to make a no-win, no-fee refund claim.”
Get in touch with our APP Fraud claim specialists
+ −Our specialist APP Fraud team is highly experienced in dealing with financial institutions such as banks and FOS on your behalf. We understand the claims and appeals processes and can guide you through the different steps involved.
We offer a no-obligation review of your case before deciding whether your compensation claim will likely succeed. We work on a ‘no-win, no-fee’ basis, so you can be reassured that you will not be charged if your scam refund claim is unsuccessful.
If you or a loved one has been the victim of a scam, get in touch today for a confidential, no-obligation conversation with our team.
You can call us on 0191 293 1500, email info@tlwsolicitors.co.uk or complete either the Start Your Claim or Request a Callback forms below.
Getting advice as soon as possible is essential, as strict time limits can apply.
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Meet Sarah, Legal Director at TLW Solicitors.
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