4 in 10 UK scam victims recover nothing after GBP £765 loss

A recent survey has found that 40% of UK residents who fell victim to fraud or scams in the past year have not recovered any of the funds lost.

The research, conducted by Pay by Bank provider Yaspa, also revealed that the average amount lost per person to fraud was GBP £765. The survey indicates that, on average, only 34% of these losses were recovered, underscoring the financial impact of scams on British consumers over the last 12 months.

Extent of losses

According to the nationally representative survey, 35% of respondents reported experiencing some form of fraud in the last year, corresponding to an estimated 17.5 million individuals. Of those affected, 16% lost between GBP £250 and GBP £500, while 10% reported losses in the range of GBP £500 to GBP £1,000.

The data shows notable differences according to gender and age. Men reported higher average losses, at GBP £943, compared to GBP £476 for women. Younger respondents, aged 16 to 24, suffered lower average losses of GBP £284. In comparison, individuals from all other age groups lost between GBP £750 and GBP £900, on average. Possible reasons for lower losses among younger people include higher technological awareness or having less disposable income available.

Regional disparities

There were significant regional variations in the reported losses. Respondents in Northern Ireland reported the highest average losses due to fraud at GBP £2,290. The North East followed with GBP £1,337, Wales at GBP £1,285, and Greater London at GBP £1,151. Other regions experienced lower average losses, with Scotland, for example, averaging GBP £315.

Platforms and methods

The analysis highlighted that the majority of scams occurred through online channels. Online shopping scams, phishing emails, and Facebook Marketplace scams were identified by respondents as the most prevalent. In addition, investment scams, incidents involving artificial intelligence or deep fake technology, and unlicensed gambling operators were frequently mentioned.

Nearly a quarter of those surveyed (24%) said they viewed ticket platforms for concerts and sporting events as particularly susceptible to scams and fraudulent activity.

Attitudes and confidence

The survey also examined public perception regarding the prevalence and prevention of scams. Over half of respondents (54%) stated they believe it is easier to scam people today compared to five years ago, whereas 19% felt it had become more difficult. Seventy percent expressed concern about themselves or someone they care about becoming a victim of fraud within the next year.

When asked about confidence in the ability to detect scams, 74% of respondents indicated they were either very or somewhat confident. Fifteen percent felt neutral, and 8% said they were not confident in their ability to spot fraud.

Responsibility and solutions

In terms of who should protect consumers, 49% identified the government as holding the primary responsibility, while 44% pointed to banks and financial institutions. Additionally, 38% believed responsibility should rest with the police, 37% with technology and social media companies, and 26% with individuals themselves. About a third of participants (33%) said improved technology for detection would represent the most effective solution for tackling fraudulent activity.

"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."

According to the survey results, platforms where people most commonly reported losing money include online shopping websites (14%), phishing emails (12%), and Facebook Marketplace (12%). Investment platforms, phone calls from impersonators, as well as cryptocurrencies and NFTs, also appeared as notable domains where losses were reported.

The findings suggest a broad-based concern about digital fraud in the UK, with a call for improved payment technologies and coordinated responsibilities across multiple sectors to curb the rising tide of scams.