Data by trade body UK Finance has revealed that authorised push payment (APP) fraud increased to £456m in 2019, versus £354m in 2018.
The use of unauthorised card, remote banking and cheque fraud resulted in a loss of £824.8m last year. However, the figure marks a 2% decrease from the prior year.
The APP voluntary Code launched last May has supported the reimbursement of £41m to fraud victims, the data revealed.
On the positive side, more than £1.8bn of fraud was prevented by the banking and finance sector last year. This is a rise of 9% from 2018.
UK Finance managing director of economic crime Katy Worobec said: “The introduction of the voluntary Code last May has meant more victims of authorised push payment fraud are receiving compensation, particularly in cases involving higher value losses and more sophisticated scams.
“However, criminal gangs are continuing to exploit online platforms to target customers directly and trick them into handing over their money or information. This shows why fraud and other economic crime should be included within the new regulatory framework for online harms, to ensure all sectors play their part in tackling the threat posed by fraud to our society.
“Only by working in partnership with the public sector and other industries can we protect innocent victims and prevent money getting into the hands of criminals.”