Research published by the Payment Systems regulator indicates that reimbursed fraud victims feel more vigilant about fraud risks, not less.
The PSR’s survey of over 1,500 UK adults captures the far-reaching impacts of APP fraud, with losses exceeding £213 million in the first half of this year alone.
Almost one in five fraud victims said their experience left them feeling anxious or depressed, while half reported a diminished trust in others.
The research challenges assumptions that reimbursement leads to complacency as reimbursed victims reported feeling more vigilant about fraud risks, not less.
A third of victims (32%) also said they had lost confidence in using new payment methods, underscoring the lasting effects fraud can have on consumer trust.
Fraud’s impact goes beyond the payments sector - 41% of victims report a loss of trust in social media companies, four times as many as those who lost trust in traditional banks.
Kate Fitzgerald, the PSR’s head of policy, says: “This research emphasises the devastating impacts of fraud on consumers’ mental wellbeing and trust. APP fraud isn’t just a financial setback, it affects people’s confidence in payments and can leave them fearful of using digital platforms and retailers in the future.
“This International Fraud Awareness Week, as we approach big shopping events like Black Friday, it’s crucial for consumers to stay vigilant - but not fearful. That’s why our new protections are so important - now, consumers can feel reassured that if they fall victim to APP fraud despite taking the right precautions, they will be able to get their money back.”