Risk Intelligence Insights

Defeating APP Fraud: Securing global payments in a risk-filled landscape

Risk Intelligence

APP fraud is a $331 billion global crisis exploiting instant payments and human trust. Learn how regulations and real-time account verification tools like LSEG’s Global Account Verification (GAV) can help businesses strengthen payment security across borders.

  • APP fraud could cost the global economy $331B by 2027, driven by scams exploiting instant payments and AI deception.
  • Governments worldwide (UK, EU, US, Australia, Singapore) are enforcing stricter fraud liability, reimbursement, and verification rules.
  • Real-time account verification tools like LSEG’s Global Account Verification reduce fraud risk, support compliance, and secure cross-border payments.

APP fraud: A $331 billion global crisis

Authorised Push Payment (APP) fraud is no longer a local issue - it’s a global epidemic. LSEG Risk Intelligence estimates that global losses from APP scams could reach $331 billion by 2027. In the UK alone, APP fraud accounted for £460 million in losses in 2023, representing 40% of all payment fraud. Meanwhile, Australia saw A$330 million lost to scams in the year to June 2024, and in the US, over 880,000 fraud reports in 2023 translated into $12.5 billion in potential losses.

In the EU/EEA, €1.13 billion in fraudulent transfers were recorded in H1 2023 - 57% of which were APP scams.

These figures underscore the urgent need for coordinated cross-border fraud prevention strategies.

Why APP fraud is so hard to stop

APP fraud exploits human trust and urgency, often using impersonation, deception, and increasingly, AI-powered deepfakes. Victims - whether individuals or businesses—are tricked into authorising payments, making recovery difficult and often impossible.

With the rise of instant payments, fragmented regulations, and limited data sharing, fraudsters can move funds across jurisdictions faster than ever. Businesses face operational inefficiencies, compliance challenges, and reputational risks.

Global action is underway

Governments and regulators are responding:

  • UK: Mandatory 50/50 reimbursement for consumers (up to £85k) and expanded Confirmation of Payee (CoP) technology.
  • US: FTC and Federal Reserve initiatives, including the Scam Classifier and new ACH fraud monitoring rules.
  • EU: PSD3 and PSR1 regulations to define fraud liability and mandate CoP across the Eurozone.
  • Australia: CoP rollout, biometric account opening rules, and real-time scam intelligence sharing.
  • Singapore: Online Criminal Harms Act to block fraudulent accounts and content.

Strengthening defences with account verification

As APP fraud continues to evolve - driven by instant payments, fragmented regulations, and increasingly sophisticated scams - organisations face mounting challenges in securing cross-border transactions. One practical response is the adoption of real-time account verification tools.

LSEG Risk Intelligence’s Global Account Verification (GAV) is one such solution. It enables organisations to verify bank account details and ownership across jurisdictions, helping to reduce fraud risk, improve operational efficiency, and support compliance with emerging regulatory standards such as PSD3 and PSR.

By integrating verification into payment workflows, businesses can better protect themselves against impersonation, invoice fraud, and misdirected payments - particularly in high-risk environments where instant payments are the norm.

GAV is already being used across sectors to support secure onboarding, streamline treasury operations, and strengthen supplier relationships in global markets.

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