Consumer risk
Types of fraud consumers have been a victim of
Fraud remains a significant concern for consumers as payment methods and digital services continue to evolve. The findings provide insight into the types of fraud consumers encounter most frequently, highlighting the challenges facing individuals and the ongoing importance of security, education and fraud prevention across the payments ecosystem.
Fraud remains widespread consumer concern
Consumer experiences of fraud reveal the growing complexity of today’s payments landscape. While the methods used by fraudsters continue to evolve, the findings suggest that many consumers have encountered fraudulent activity in one form or another, reinforcing the importance of trust and security within financial services.
Understanding which types of fraud are most commonly experienced can help identify where consumers feel most vulnerable and where preventative measures may have the greatest impact. The results highlight the need for continued investment in fraud detection, consumer awareness and protective measures to maintain confidence in both traditional and digital payment channels.
Findings
Older consumers report higher fraud exposure
Consumers aged 55 and over are among the groups most likely to report having experienced fraud. The findings challenge the perception that fraud is primarily a concern for younger, digitally active consumers, highlighting the broad reach of financial crime across the population.
As payment channels become increasingly digital, the results reinforce the importance of effective fraud prevention, consumer education and accessible support mechanisms. Building confidence in payment security remains essential to maintaining trust across the payments ecosystem.
TPA member insights
Expert perspectives on the findings and their implications.
Brad Elliott, CEO, RelyComply
“1 in 5 people defrauded last year tells us this isn't a consumer problem; it's about what happens to the money afterwards. Since reimbursement rules changed, that loss sits with institutions, not the customer, so the fraud rate measures how well we onboard. A stolen card is the visible part; the money has to land in an account that shouldn't have been opened and behave in ways we should have flagged. London's rate, double the average, shows that fraud concentrates where the money moves, not where the victims live. So the answer shouldn't be more friction at the checkout for honest customers; it's getting identity and behaviour right at the account level, because that's where the fraud is enabled.”
Humzah Amin, Founder, Guardexia
“The finding that 20% of respondents experienced fraud in the past year, combined with security ranking as the top factor for adopting new payment methods, reflects a broader trust deficit in payments. For FCA-regulated EMIs and payment institutions, this makes robust safeguarding infrastructure not just a regulatory obligation but a commercial imperative. PS25/12 raised the bar on how firms must evidence the protection of customer funds daily. The firms that treat safeguarding as an operational discipline rather than a compliance checkbox will be better positioned to earn and retain consumer trust as the payments landscape evolves."
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Lynsey Hoxha, Head of Sales, Dialect
"Antifraud strategies and solutions must be a key focus for any business providing financial services. This is not a one-time effort but an ongoing, evolving process requiring continuous improvement. Organisations should strengthen transaction monitoring, apply enhanced customer due diligence checks, and continuously improve fraud detection capabilities. A culture of vigilance, supported by highly trained teams and the right technologies, ensures that risks are identified and mitigated effectively. This approach enables businesses to adapt to emerging fraud trends, strengthen operational resilience, and maintain customer trust, which is essential for sustainable growth in a very complex financial landscape within the UK.”
Tim Khamzin, Founder & CEO, Vivox AI
“One in five UK consumers hit by fraud in a year shows detection isn't keeping pace, and London's rate—double the national figure—proves fraud concentrates where transaction volume and complexity peak. The industry instinct is to throw more AI at the problem, chasing accuracy scores. That's the wrong target. As mandatory reimbursement raises the cost of every decision, being right isn’t enough; they need to show why. Banks don't want the 99%-accurate black box; they want the 92%-accurate decision they can defend. The shift is from unexplainable accuracy to auditable decisions that rebuild trust.”