Online fraud is on the rise again, with criminals increasingly using stolen card details and tricking victims into revealing one-time passcodes, according to new figures from UK Finance.
The banking industry body recorded 3.13 million cases of unauthorised fraud in 2024 – a 14% increase on the previous year. Losses totalled £722 million, up 2% from 2023. Much of the rise was driven by a resurgence in remote purchase fraud, where scammers use stolen card information to buy goods online, over the phone or by mail order. These cases jumped 22% to nearly 2.6 million, while losses rose 11% to almost £400million.
UK Finance warned that fraudsters are also increasingly using social engineering techniques to manipulate people into handing over one-time passcodes (OTPs). With this information, criminals can approve fraudulent transactions or add stolen card details to digital wallets.
Ben Donaldson, managing director of economic crime at UK Finance, said: “Fraud continues to blight this country, with over £1billion stolen by criminals in 2024. This causes severe harm to individuals, society and our economy as the stolen money goes to serious organised crime groups, both here and abroad.”
He added: “The financial services industry works tirelessly to protect customers and prevent billions more being stolen by fraudsters, but we know that criminals are always looking for new ways to exploit victims.”
Victims of unauthorised fraud cases are legally protected against losses, and UK Finance research signals that customers are fully refunded in more than 98% of unauthorised fraud cases.
Meanwhile, the number of authorised push payment (APP) fraud cases, where people were tricked into transferring money to fraudsters, fell by a fifth (20%) last year. UK Finance recorded some 186,000 APP fraud cases, the lowest figure since 2020. APP losses fell by 2% to just over £450million in 2024.
Despite the fall in APP scam reports, UK Finance said there was a “notable increase” in international payments being made as part of APP fraud, with criminals likely trying to persuade people to send money outside of the UK.
The largest amount of APP losses pertained to investment fraud, which happens when a criminal convinces their victim to move their money to a fictitious fund or to pay for a fake investment. UK Finance said £144.4million was stolen this way in 2024, rising by a third (34%) compared with 2023, despite a reduction in cases.
Mr Donaldson added that, to deal with the threat of scammers, “we need a more proactive approach with the public and private sectors working more closely together and using data and intelligence more effectively.”
How to avoid an online scam
An expert from Experian, the credit reporting site, shared some top tips to avoid falling victim to fraudsters.
John Webb, consumer affairs expert, Experian UK&I, said: “Don’t share too much personal information on social media, such as your mother’s maiden name, home address or when you’re away. It’s important to make sure your privacy settings are up to date across all platforms.”
Additionally, when you move address, re-register on the electoral roll as soon as you can. Mr Webb said: “This helps ensure your details are no longer registered at your previous address. It’s a good idea to set up mail redirection for a while too.”
Another top tip is to have an individual unique password for each online account you have. Mr Webb said: “This means fraudsters are less likely to gain access to multiple accounts.”
Be cautious about attachments, links or telephone numbers included in emails and text messages. Mr Webb said: “If in doubt, visit the company website and contact them directly.”
Finally, he added: “Keep your private documents safe at home, and be careful travelling with important ID documents. Always destroy mail or documents with personal information if it’s no longer needed.”