Think tank: Payment fraud is a transnational security risk

The Royal United Services Institute (RUSI) warns authorised push payment (APP) fraud has become a transnational security threat, estimating global losses of £329bn in 2025 and saying almost half the world’s population is targeted by a scam each week. APP involves victims being tricked into sending money to accounts controlled by criminals.

RUSI’s report, Authorised payment fraud: approaches to policy and governance, describes APP as a “fully fledged” global security problem rather than only a consumer protection matter. The think tank estimates criminal profits from APP are near levels seen in the illicit drugs trade and records that fraud-related Interpol notices and alerts rose 54% globally since 2024. The report says many scam operations have become polycriminal, overlapping with organised crime, corruption, human trafficking, cyber crime and terrorism.

The report sets out unequal effects across countries. People in wealthy economies lose larger sums in absolute terms, but the relative impact is greater in low- and middle-income countries. RUSI warns that failing to act could erode trust in digital payments and formal banking services and reverse recent gains in financial inclusion.

In the UK, RUSI estimates about two-thirds of schemes targeting the public originate overseas. Industry figures show criminals stole £1.28bn in the UK last year through payment fraud, with APP accounting for £576m. The industry also reports 66% of APP schemes began on social media and describes the trend as a national security issue that has been accelerated by artificial intelligence.

Banking bodies are pressing technology firms to do more to stop fraudulent advertising and marketplace listings. Ruth Ray, managing director of economic crime at UK Finance, argued the platforms benefit financially from fraudulent advertising and that it is wrong for firms to profit from weak controls around advertising. She added that many large social media platforms give criminals access to people at scale in their everyday lives.

RUSI calls for international coordination and changes to governance, saying single-sector and fragmented responses are inadequate. The report urges governments, banks and technology companies to cooperate on regulation, enforcement and preventive measures that can operate across borders and multiple online channels.

The analysis links the rise in APP to technological and organisational changes used by criminals, including large-scale advertising on social networks and automated tools. It notes growing sophistication in scams that combine social engineering, identity theft and payment diversion. Typical schemes include false investment offers, romance scams, bogus online marketplaces and impersonation of trusted organisations. RUSI and industry bodies recommend clearer legal obligations for platforms, stronger cross-border law enforcement cooperation and defined responsibilities for banks and tech firms to prevent and respond to APP.