The landscape of APP scams in 2023 reflects the diverse strategies used by fraudsters to exploit both individuals and businesses. Purchase scams dominated APP fraud by volume, making up 68% of all reported cases. These scams, often targeting consumers on social media marketplaces or fake websites, amounted to over £72 million in losses. With an average loss of £476 per victim, purchase scams may seem relatively low-cost individually, but their sheer prevalence underscores the importance of consumer vigilance when shopping online.
Investment scams, though fewer in number (6% of cases), inflicted the greatest financial damage, with total losses exceeding £80 million. Fraudsters frequently lure victims with promises of high returns on fake investment opportunities, often promoted via social media or fraudulent advertisements. The average loss per victim was £6,422, reflecting the high stakes and credibility fraudsters establish in these schemes.
Impersonation scams, a category divided into two main subtypes, highlight the power of trust exploitation. Scammers posing as police or bank staff accounted for 4% of cases but caused losses of over £64 million, with an average victim loss of £6,441. Meanwhile, general impersonation scams, where fraudsters claim to represent various trusted entities, made up 10% of cases, leading to £42.8 million in losses.
Smaller but equally damaging scams include romance scams, which target emotional vulnerability and trust. While these accounted for just 2% of cases, they caused £22.8 million in losses, with victims losing an average of £4,555. Similarly, invoice and mandate fraud, primarily targeting businesses, caused £28.4 million in losses despite representing only 1% of incidents. Each case carried an average loss of £14,469, highlighting the financial risks organisations face from this type of fraud.
At the lower end of the spectrum, advance fee scams caused £25.8 million in losses, targeting victims with promises of loans, prizes, or services in exchange for upfront payments. Though less damaging on an individual basis (average loss £1,336), these scams thrive on volume and quick, low-risk gains for fraudsters.