Barclays Bank has become the latest UK bank to publish an analysis of fraudulent activity in the UK over 2024, finding that purchase scams were the dominant form of fraud.
The bank’s data shows that purchase scams account for 74% of total fraud claims, though a lower average claim of £650 means that this type of fraud accounts for just 24% of the total value of reported scams.
Last year saw the UK government and financial authorities focus heavily on the extent of fraud in the country and in particular how this can be prevented. When granting new fraud prevention powers to banks in H2 last year, HM Treasury noted purchase scams and romance scams as the most common forms of fraud.
Barclays’ research found that 40% of UK consumers have either fallen victim to a purchase scam, known someone who has been, or have been targeted by one. However, the bank also found that ‘fake delivery’ scams and instances of fraudsters impersonating the HMRC tax office had more exposure at 51% and 42% respectively.
Kirsty Adams, a Fraud and Scams Expert at the bank, said: “The variety of scam tactics and channels continued to evolve considerably this year, but it’s clear that there are a number of enduring scam trends; the majority of scams started on social media once again, purchase scams continue to be the most reported scam type, and consumers demonstrated they are overwhelmed by the scam risks posed to them and their loved ones.
“There’s no doubt that scammers will take advantage of shoppers in the Christmas and Boxing Day sales, so even as the year draws to a close, we’re urging people to stay vigilant. Looking ahead to 2025, we’re hopeful we will see progress in the fight against fraud, in the form of cross-industry collaboration. It is only by joining forces that we can tackle this epidemic.
“Falling victim to a scam is not something to be ashamed of; it can happen to anyone, so we want to arm people with information and advice on how to stay scam safe.”
New year, same fraud
Barclays’ data mirrors similar findings by some of its high-street banking rivals. In November 2024, TSB and NatWest published their own research with the former finding that purchase fraud made up 55% of all cases between January and October 2024 while NatWest cited it as one of the fastest-growing types of scam.
However, Barclays has also rang alarm bells over the extent of investment fraud. The bank asserts that while this may not be as widespread it does result in losses of far more value than other types of fraud.
A total of 32% of respondents to the bank’s research stated that they or someone they knew had fallen victim to had been targeted by an Investment scam. However, it also found that investment scams accounted for £1 out of every £3 lost to fraud in 2024.
Concerns around investment scams often link in with one of the UK banking industry’s biggest talking points around fraud: the role social media and big tech companies play in fraud preparation and prevention, in the banks’ view.
Barclays states that 77% of consumers believe that tech companies should do more to prevent scams with 64% thinking these firms should be made to reimburse scam victims.
This argument has been made repeatedly by the UK banking and payments sectors in the context of new rules imposed by the Payment Systems Regulator (PSR) in October last year requiring payments firms to reimburse victims of fraud up to a cap of £85,000.
Both the aforementioned TSB and NatWest, as well as others like Lloyds and Revolut, and The Payments Association (TPA), have shared Barclays’ concern in this area. The Labour government may be on the banks’ side in this argument.
Pre-election reports indicated that Labour was leaning towards putting more responsibility on big tech firms to prevent and possibly reimburse fraud, and since its election victory the party has introduced the aforementioned new fraud prevention powers for banks.
