UK Banks Report Surge in APP Fraud Losses as Pressure Mounts on Meta and Tech Platforms

Britain’s banking sector recorded a sharp rise in losses linked to authorized push payment (APP) fraud in 2025, highlighting growing concerns over online scams and increasing calls for stronger accountability from technology companies, including Meta Platforms.

According to data released by UK Finance, losses from APP fraud climbed 19% year-over-year to £576.4 million ($772.8 million). APP fraud occurs when criminals manipulate victims into willingly transferring money through scams such as fake investments, fraudulent purchases, and romance schemes.

The increase comes as regulators review reimbursement rules introduced in October 2024. The regulations require banks and payment providers to compensate APP fraud victims for losses of up to £85,000. The United Kingdom remains the only country with a mandatory reimbursement framework for APP fraud.

UK Finance reported that banks reimbursed £354.3 million to scam victims last year. However, the total APP fraud figures also include losses that fall outside the current compensation scheme.

Industry experts warn that fraudsters are becoming more effective through sophisticated social engineering tactics, increasingly supported by artificial intelligence. Ruth Ray, Director of Economic Crime at UK Finance, said many APP fraud cases still originate through online technology platforms and telecommunications channels, emphasizing the need for stricter and enforceable responsibilities for these sectors.

Janine Hirt, Chief Executive of Innovate Finance, echoed those concerns, arguing that technology companies should contribute to the cost of fraud reimbursements and strengthen consumer protections through measures such as seller verification and enhanced screening processes.

Meta has faced ongoing scrutiny over fraudulent advertisements appearing on its platforms. Reuters previously reported that internal company documents suggested Meta expected approximately 10% of its 2024 revenue, or about $16 billion, to come from advertisements linked to scams and prohibited products. In the UK, regulators and industry groups have repeatedly criticized the company for failing to effectively block illegal advertisements promoting high-risk investment opportunities.

Investment scams generated a record £221.5 million in losses last year, driven largely by misleading social media promotions promising high returns. Purchase scams and romance scams also reached record levels, according to UK Finance.

The Payment Systems Regulator reiterated that technology firms, banks, and telecom providers must work together to combat online fraud. An independent review of the reimbursement rules by Frontier Economics is expected to be published in early July.