APP fraud is now the biggest payment fraud challenge in Europe. Instant payments move money in seconds, and scammers are using AI to make their tricks more convincing. According to the EBA and the ECB, EU citizens lost over €1 billion to APP fraud in just six months, more than half of all fraud losses in that period. In the UK, UK Finance reported APP fraud losses of £576.4 million in 2025, a 19% rise.
The good news: Europe is building stronger defences, and the most effective ones are shared. Here is how banks, PSPs, platforms and regulators are working together to stop scams before money moves.
What Is APP Fraud?
Authorised push payment (APP) fraud happens when a scammer tricks a person or business into sending money themselves. The victim approves the payment, so security checks like passwords and SCA do not stop it.
Common types include investment scams, romance scams, purchase scams and impersonation scams, where criminals pretend to be a bank, a company or a public official. Most cases do not start at the bank: in the UK, 66% of APP fraud cases begin online and 17% through telecom networks. That is why no single organisation can solve it alone.
Verification of Payee and PSD3: Europe’s New Anti-Fraud Tools
Verification of Payee (VoP) went live across the EU on 9 October 2025. It checks that the payee’s name matches the IBAN before a euro payment is sent, so customers can spot a fake account in seconds. Similar checks have worked well: the UK’s Confirmation of Payee contributed to a 17% fall in APP fraud in 2023, and a Dutch name-check system saw an 81% drop in some fraud types.
PSD3 and the PSR build on this. The new framework introduces liability for payment service providers to reimburse APP fraud victims where expected fraud-detection standards were not applied. The UK offers a useful reference: its reimbursement scheme is estimated to have cut payment fraud losses by £73 million a year.
5 Ways the Payments Ecosystem Can Stop Scams Together
The strongest fraud prevention comes from many players acting as one network.
- Share fraud intelligence in real time. When banks, PSPs and fintechs share scam signals, a fraud spotted at one institution can be blocked at the next.
- Protect both ends of the payment. Sending and receiving institutions each play a role, from warning the payer to checking new accounts that receive money.
- Work with digital platforms. Since most scams start online, partnerships with social media, messaging and marketplace platforms help stop fake ads and accounts early.
- Use AI against AI. Real-time behavioural analytics can flag unusual payments in milliseconds, without adding friction for genuine customers.
- Educate customers. Simple, timely warnings at the moment of payment remain one of the most effective defences.
Join the APP Fraud Debate in Amsterdam
Fraud prevention is a core theme at The Next-Gen Payments Blueprint 2027, held in Amsterdam on 17–18 March 2027. On Day 1, the Executive Security Panel asks Beyond Banking: How Should Banks, Digital Platforms and Regulators Share Responsibility for APP Fraud?, with Benjamin David, Head of Intelligence at The Payments Association.
The agenda also includes a session on next-generation fraud prevention and real-time risk intelligence, plus a closed-door roundtable on AI and fraud intelligence. You will meet 300+ senior decision-makers from banking, payments, fintech, merchants and regulators.
Secure your place: Click here to register with Early Bird Discount