ACI Worldwide, a global provider of payments technology, has released its latest Scamscope report, showing that APP scam losses will reach USD 7.6 billion by 2028.
The report, created in partnership with GlobalData, notes that authorised push payment (APP) fraud losses are on the rise across six leading real-time payment markets: the US, the UK, India, Brazil, Australia and the UAE.
Scammers utilise RTP to their advantage
As the rapid adoption of real-time payments (RTP) enables faster and more accessible transactions, scammers leverage this opportunity to bypass traditional controls and steal funds before they can be traced.
This, along with other advanced technologies such as AI, allows fraudsters to carry-out more sophisticated attacks. As a result, the Scamscope report anticipates that all APP fraud losses will increase from 63% in 2023-2024 to 80% by 2028.
The impact of APP fraud on financial institutions
As authorised push payment scams increase, consumers’ trust in their financial institutions decreases. The 2024 Scamscope report notes that 25% of scam victims change their banking company, and 20% of victims close their accounts without opening a new one.
Governments enforce rules on financial institutions, imposing penalties for non-compliance with fraud prevention measures, and requiring reimbursements for victims who suffer losses due to fraud. Additionally, government mandates highlight the importance of a strong defence against financial fraud with the help of AI-driven fraud management systems, that can flag anomalies, analyse transaction data, and facilitate real-time collaboration.
A short overview of the 2024 Scamscope report
By 2028, all six leading RTP markets are projected to experience large losses due to APP scams, with the US leading with losses of USD 3.083 million.
The CAGR of losses through RTP varies across countries from 2023 to 2028. Brazil shows the highest CAGR at 38%, followed by the UAE at 30%. Moreover, India is projected to have the lowest CAGR at 6%.
The top APP scams in these countries include impersonation, purchase, investment and advance payments.
The 2024 Scamscope report contains a global snapshot of data, in-depth analysis, and detailed information per country.
For more information about ACI Worldwide, please check out their detailed profile in our dedicated, industry-specific Company Database.
Source: The Paypers
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