RUSI: Authorised payment fraud now a global security threat

The Royal United Services Institute (RUSI) has published a report saying authorised payment fraud has escalated into a transnational security threat. The report estimates more than half the world’s population is targeted by a scammer each week and puts global losses at £329bn in 2025.

Authorised payment fraud, commonly called authorised push payments (APP), happens when a victim is tricked into transferring money to an account controlled by a criminal. The fraud often uses social engineering on digital platforms to persuade people to authorise payments.

RUSI describes APP as a large-scale criminal industry that crosses borders and sectors. The think tank said many operations have become “polycriminal” enterprises that connect payment fraud with organised crime, corruption, human trafficking, cyber crime and terrorism. RUSI added that Interpol notices and alerts related to fraud have increased by 54% globally since 2024.

The report says criminal profits from APP are comparable to revenues from some illicit drug markets. RUSI noted the impact is greater in low- and middle-income countries because fraud can erode trust in financial systems and threaten recent gains in financial inclusion.

UK financial institutions have reported similar figures. UK Finance recorded £1.28bn lost to payment fraud in the UK last year, with APP accounting for £576m. The industry body reported that 66% of APP affecting UK customers originated on social media platforms and described payment fraud as a national security threat, adding that artificial intelligence is accelerating some fraud operations.

Banks are calling on social media companies to act on fraudulent advertising and accounts. Ruth Ray, managing director of economic crime at UK Finance, criticised platform controls, saying, “The alarming truth is that the tech platforms are financially benefiting from fraudulent advertising. It’s wholly wrong that other sectors are knowingly profiting from fraud and scams due to loose controls around advertising.” She named services such as Facebook Marketplace, Instagram and TikTok as common contact points for fraudsters.

RUSI urged a coordinated international response beyond single-sector measures. The think tank called for national regulators, financial institutions, technology platforms and law enforcement to align on policy, information-sharing and enforcement to disrupt cross-border scam networks. RUSI added that around two-thirds of schemes targeting the UK public originate overseas.

The report recommends regulatory changes to create enforceable standards on digital advertising and account verification, and to improve victim support while reducing incentives for criminals.

RUSI also said that compensation schemes and bank reimbursement address some individual cases, but that technical fixes and one-off reforms will not deal with the scale and cross-border nature of modern APP crimes.