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Research by the Payment Systems Regulator (PSR) reveals that 36% of fraud victims are now hesitant to adopt new money management methods with vulnerable groups are particularly affected.
Almost one in five fraud victims said their experience left them feeling anxious or depressed, while half reported a diminished trust in others. A third of victims (32%) also said they had lost confidence in using new payment methods, underscoring the lasting effects fraud can have on consumer trust.
Marking International Fraud Awareness Week the research showed the emotional and financial toll of Authorised Push Payment (APP) fraud on UK consumers. With APP fraud losses exceeding £213 million in the first half of this year alone.
The PSR’s survey of over 1,500 UK adults captures the far-reaching impacts of APP fraud, with the most common cases being low-value purchase scams under £200.
Kate Fitzgerald, the PSR’s Head of Policy, said “This research emphasises the devastating impacts of fraud on consumers’ mental wellbeing and trust. APP fraud isn’t just a financial setback, it affects people’s confidence in payments and can leave them fearful of using digital platforms and retailers in the future.
“This International Fraud Awareness Week, as we approach big shopping events like Black Friday, it’s crucial for consumers to stay vigilant – but not fearful. That’s why our new protections are so important – now, consumers can feel reassured that if they fall victim to APP fraud despite taking the right precautions, they will be able to get their money back.”