Study predicts 111% increase in UK fraudulent banking and money transactions by 2029 – The Intermediary

A new study from Juniper Research reveals that the number of fraudulent banking and money transfer transactions in the UK is expected to rise by 111% over the next five years, increasing from 4.2 million in 2024 to 8.8 million in 2029.

Despite the UK being a highly advanced market in fraud detection and prevention (FDP), the study highlights the necessity for additional measures, such as AI-based real-time FDP, to combat the escalating threat of fraud.

The upcoming Payment Systems Regulator (PSR) reimbursement regulation is predicted to significantly influence the adoption of FDP solutions by fintechs.

This regulation aims to curb the rapid increase in Authorised Push Payment (APP) fraud, where fraudsters deceive victims into making large bank transfers.

However, there are concerns that this regulation might slow down faster payments to ensure the legitimacy of APPs. Integrating AI into FDP systems is essential for financial institutions to swiftly identify APP fraud while maintaining the efficiency of faster payments.

Data sharing among stakeholders in the payments ecosystem is also identified as crucial for enhancing the effectiveness of FDP solutions, particularly in the context of faster payments where real-time fraud detection is vital.

Report author Cara Malone stated: “The plethora of data collected throughout the payments processes will be utilised to develop several different FDP tools, ranging from behavioural biometrics to identification.”