Around half the complaints from Londoners were about authorised push payment (APP) scams
Fraud and scam complaints in London have surged by a third compared to last year, according to new research from the Financial Ombudsman Service (FOS).
Between April 1, 2024, and December 31, 2024, Londoners submitted approximately 6,900 complaints about fraud and scams to the FOS, marking a significant increase from the 5,200 complaints filed during the same period in 2023. Nationwide, the UK saw around 26,500 fraud and scam complaints during this timeframe, up from 19,800 in 2023—a similar year-on-year increase of one-third.
The Financial Ombudsman Service, a free dispute resolution service for consumers, may assist individuals who have lost money due to fraud or scams and have been denied reimbursement by their banks.
Rise in Authorised Push Payment Scams
Around half of the complaints from Londoners were related to authorised push payment (APP) scams, a scheme in which fraudsters deceive victims into transferring money under false pretenses. Common examples include fraudsters selling counterfeit goods, such as cars, or promoting non-existent services, leading consumers to unknowingly transfer money to scammers.
James Dipple-Johnstone, Deputy Chief Ombudsman at the FOS, emphasized the serious impact of such crimes. “Being the victim of a fraud or scam can be a life-changing experience—both emotionally and financially—but support is available. In recent years, as a result of our investigations into thousands of cases across the UK, more than £150 million has been returned to those who have fallen victim to these crimes,” he stated.
Dipple-Johnstone urged consumers to report suspicious transactions to their banks immediately. “If people don’t feel they have been treated fairly and are unhappy with how their financial provider has handled their complaint, they can come directly to our service. Getting a fair answer is free and easy.”
Sophisticated Multi-Stage Frauds on the Rise
The FOS has noted a rise in multi-stage frauds, where stolen funds are funneled through multiple banks before reaching the fraudster. These schemes are particularly prevalent in cryptocurrency investment scams and ‘safe account’ scams, where fraudsters impersonate trusted entities, such as banks, and manipulate victims into transferring their money to supposedly secure accounts.
Being the victim of a fraud or scam can be a life-changing experience—both emotionally and financially—but support is available. In recent years, as a result of our investigations into thousands of cases across the UK, more than £150 million has been returned to those who have fallen victim to these crimes.
James Dipple-Johnstone, Deputy Chief Ombudsman at FOS
Pat Hurley, Ombudsman Director at the FOS, highlighted the evolving nature of scams. “People from all walks of life can fall victim to a scam. Scammers’ strategies are always evolving, and they are constantly looking for new ways to defraud people. Increasingly, we’re seeing more multi-stage frauds, where fraudsters encourage people to move money through different banks or other payment providers for ‘investment’ opportunities, including cryptocurrency. While victims are promised amazing returns, it’s actually a scam.”
Hurley also warned against traditional scams involving impersonation of officials. “We continue to see criminals pose as an official body, such as a bank or the police, asking consumers to move their money to a ‘safe account.’ If you’re called out of the blue, hang up the phone.”
Consumer Protection and Reimbursement
When consumers submit a complaint to the FOS, the service assesses the case using evidence from the consumer, the financial institution, and relevant third parties. The investigation considers applicable regulations, ultimately determining whether the financial business treated the consumer fairly. If wrongdoing is found, the FOS has the authority to order banks to reimburse affected customers.
Previously, the Contingent Reimbursement Model (CRM) Code, a voluntary initiative established in July 2019, required participating banks to refund victims of APP fraud unless an exception applied. However, new rules introduced by the Payment Systems Regulator (PSR) replaced the CRM Code in October 2023. While the CRM Code is no longer in force, the FOS may still consider it when reviewing complaints about transactions that took place before the regulatory change.
As fraudsters refine their tactics, financial authorities continue to emphasize the importance of vigilance and consumer protection. The Financial Ombudsman Service encourages individuals to report suspicious activity promptly and seek redress if they believe they have been unfairly treated by their bank.
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