What Percentage of Customers Leave Their Bank After an Incident of APP Fraud? | ACI Worldwide

Fraud prevention is evolving fast, and Authorized Push Payment (APP) scams are at the center of it. In a recent discussion, Cleber Martins, Head of Payments Intelligence and Risk Solutions at ACI Worldwide, a with over 24 years of expertise in payments and fraud shares his thoughts on security and trust in the financial ecosystem – and the challenges financial institutions face to retain that trust.

Martins shares that more than 30% of victims choose to not continue with their financial institution following a successful fraud attempt, which negatively impacts consumer trust and confidence and leads to clear frustration from both banks and their customers
Education for consumers is now a critical element in the fight against APP fraud. Banks, regulators, and fintech companies are actively educating the public about the risks associated with digital payments, —for example, through Brazil’s instant payments PIX infrastructure, where public awareness campaigns are aiming to make users more vigilant—, which reduces the success rate of fraud attempts.

Globally, there is also a clear need for accountability – especially concerning the receiving end of transactions. Within the next 2-3 years, the adoption of predictive intelligence exchanges across industries will be widespread, which will lead to enhanced fraud detection and improved experiences for users, enforced by regulations or members of the financial industry.

In October 2024, the UK Payment Systems Regulator issued a mandatory reimbursement scheme for victims of  (APP) fraud, requiring banks,payment firms, building societies, e-money firms, and payment service providers to reimburse customers within five business days –- with costs split between the sending and receiving banks.

However, while this is now mandated in the UK, other countries such as the U.S., Australia, and Brazil do not have mandatory reimbursement regulations – – leaving the consumer out of pocket and lacking in trust.

To truly combat APP fraud, financial institutions and regulators need to establish a consistent methodology for sharing intelligence to enable a coordinated and effective defense to rebuild public trust.

Be sure to download the Scamscope report today to understand the trends, get the latest figures, and get tooled up.

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