New data from the Financial Ombudsman Service shows a significant rise in fraud and scam complaints over Q1 this year, 8,734 instances reported by consumers, of which over half were in relation to customer approved online bank transfers, also known as authorised push payment (APP) scams.

By comparison, in the same period for 2023/24 there were 6,094 fraud and scam complaints.

APP scams can be particularly devious, with fraudsters posing as genuine payees to trick victims into transferring money. 

Over the first three months of this financial year, the FOS received 4,752 APP cases, of which 2,734 were not covered by the Contingent Reimbursement Model (CRM) code. This code, voluntary for financial providers to sign up to, provides additional protection for consumers, and means they are reimbursed unless there are exceptional circumstances. 

If a bank has not signed up, consumers can have less recourse for reimbursement.

According to the Ombudsman, the rise in cases is due to a number of factors, including a growing number of people inadvertently using their credit or debit cards to pay fraudsters, and increasing numbers of multi-stage frauds which see consumers put in multiple claims due to the number of firms involved.

With new rules incoming, victims of APP scams and other fraud could see more of their money returned as banks will be forced to reimburse consumers unless they can prove gross negligence.

These reimbursement rules are being brought in by the Payment Systems Regulator, and could mean up to £415,000 returned for APP scam victims.

Abby Thomas, chief executive and chief Ombudsman of the Financial Ombudsman Service, said: “Being a victim of a fraud and scam is a horrendous experience – not just financially, but emotionally too. That’s why it’s disappointing to see complaint levels rising to even higher levels.

“In recent years, we have investigated thousands of cases, returning more than £150m to those who have fallen victim to these crimes. No matter how complex a case is, people can come with confidence to our free, independent service and we’ll investigate their complaint.”

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There are a few key ways people can avoid falling victim to these frauds, according to the FOS. Banks, or other official bodies, such as the police, will never call consumers and ask them to move their money to a ‘safe account’. If that happens, hang up the phone and contact your bank.

Also, be careful about investments found on social media. Consumers should do their research if they plan on investing, and ensure that the provider is regulated by the Financial Conduct Authority. Otherwise it might turn out to be a scam.

On a more positive note, more fraud victims are having their day in court. A recent report from KPMG found that the number of fraud cases in UK Crown Courts increased by 16% in the first half of the year compared to the same period in 2023.