UK Second to Canada in Adyen’s Annual Fraud Index: with Victims of Payment Fraud Losing an Average £757.64 in 2025

Adyen, the global financial technology platform of choice for leading businesses, has launched new research uncovering the extent to which payments fraud is increasing globally, with UK shoppers affected by fraud losing an average of £757.64 over the past 12 months.

The UK saw one of the sharpest increases in the value of stolen sums, with average losses up 144% over the past year. In 2024 the average amount lost by those who experienced payments fraud was £311.09.

Comparing numbers internationally, Canadians who experienced payments fraud faced the biggest percentage increase in amounts stolen year-on-year (223%), at £1,456.21.The percentage increase in the US was 124%, while the research found people in Japan experienced a 19% decrease (£627.12) in the average amount scammed since 2024.

Adyen found that use of AI amongst people shopping is changing how we purchase, with over 1 in 10 British consumers (12%) using the technology to shop over the past year. But consumers are worried about AI and its impact on fraudulent activity, with almost one third (29%) saying that they are concerned about an increased risk of fraud and scams.

When exploring the impact of payment fraud cross-generations, Adyen found the Baby Boomer population (60 – 78 years) to have lost the highest amount on average (£1676.79). This represented a 285% increase on 2024’s average (£436.1). Exploring trends in AI usage, Adyen also found that this generation recorded a 38% increase in using the technology when helping them to purchase goods. Millennials (28 – 43 years) who were victims of fraud lost the least (£433.32), while Gen Z (16 – 27 years) lost £755.24 over the past year.

“With AI, fraud is a lot harder to detect, because those AI models are able to really replicate what a human would write or say. Social-engineering kits now write flawless emails, texts and even clone brand sites. Stolen credentials are fed straight into mobile wallets, bypassing many legacy checks. AI-authored lures such as texts or emails are no longer riddled with spelling mistakes; they read like brand-approved marketing copy and are arriving at industrial scale”, warns Brigette Korney, Global Head of Risk & Fraud Prevention at Adyen.

“As AI technology is constantly evolving, educating shoppers about its potential impact on fraudulent activities is crucial, especially considering the varying levels of tech-savviness among customers.”

Fraud hits retail too

Merchants have not been immune to the increased threats of fraud either, with one quarter (25%) of UK retailers surveyed describing fraud as a ‘significant cost’.

Adyen research found that there has been an 18% increase in fraud over the last 12 months, with businesses suffering an average loss of £1.2 million during that period. Of those, 12% experienced losses exceeding £2.5million. Merchants said 19% of all fraud they experience is related to disputes between a customer and merchant that result in a refund, known as chargebacks.

Preventing fraud can also become challenging as shoppers have indicated a reluctance to interact with security measures that are viewed as a cause of friction in the shopping experience. Nearly one in four (22%) of consumers surveyed said they want to complete a transaction in as few clicks or stages of entering information as possible.

“What once were clumsy phishing attempts are now sophisticated, AI-generated messages that mimic trusted brands with alarming accuracy. Consumers are receiving fake texts, emails, and even visiting cloned websites that are nearly indistinguishable from the real thing, putting them at greater risk of unknowingly handing over sensitive information or making payments to fraudulent sources”, adds Nicole Olbe, UK&I Managing Director at Adyen. 

“As fraud evolves, so must the tools that protect consumers. This starts with businesses taking proactive steps and investing in advanced fraud detection technologies, educating customers on how to spot scams, and collaborating across industries to share threat intelligence.”