UK Finance, the industry association that represents nearly 300 firms in the banking and finance sector, recently released its Annual Fraud report, highlighting how over £1.2 billion was stolen by fraudsters in 2022, with approximately three-quarters of online fraud starting on social media.

We examine some of the most common fraud types catching people out.

Unauthorised debit, credit and other card fraud

Unauthorised card fraud amounted to £726.9 million in 2022.

The most common type of scam under unauthorised fraud remains remote purchase. Remote purchase fraud, also known as card-not-present fraud, is when fraudulent transactions are conducted without a physical payment card. It typically occurs in online or telephone transactions where the fraudster uses stolen or compromised card details to make an unauthorized purchase.

The total amount lost on remote purchase fraud in 2022 was £395.7 million.

A total of £100.2 million was stolen via fraudsters with lost or stolen cards in 2022, an increase of 30% from 2021.

Card ID theft nearly doubled in 2022 compared to the previous year to £51.7 million, this is when a fraudster takes over an account or opens one in another person’s name.

Authorised fraud

Authorised fraud or authorised push payment (APP) is when a victim is tricked or coerced into authorising a payment into an account overseen by the criminal. Common types of authorised fraud include investment, purchase and romance scams.   

The total financial loss to this fraud in 2022 amounted to £485.2 million, split across 207,372 cases.

Investment fraud remained the most common APP fraud, with a total loss of £114.1 million, with impersonation scams, specifically impersonating police and bank staff, losing £109.8 million during the year.

Fraud origination

UK Finance’s report found that online fraud totals 78% of cases, equating to 36% of the overall financial loss. Nearly a fifth (18%) of the cases were via telecommunications, accounting for 44% of the total losses.

When it comes to protecting yourself against fraud, it’s important to stay vigilant, safeguard your personal information, ensure you are using strong passwords and regularly check your bank account. When browsing the internet and interacting with an unknown source, be wary of suspicious emails, links, and attachments, as they could be phishing attempts, especially through social media.

For more information have a look at UK Finance’s campaign Take Five To Stop Fraud, and if you think you are a victim of financial fraud contact Action Fraud.

Have a look at our fraud section to learn how we keep your online savings account safe.