Authorised Push Payment (APP) scams are rapidly becoming a significant concern in the global financial landscape, with losses expected to reach an alarming $7.6 billion by 2028 across six major real-time payment markets: the U.S., U.K., India, Brazil, Australia, and the UAE. This projection comes from the latest Scamscope report by ACI Worldwide, a pioneer in global payments technology, in collaboration with GlobalData, a leading data and analytics company.
The UAE is experiencing a notable increase in APP scam losses. From $8.3 million in 2023, these losses are expected to soar to $30.3 million by 2028, reflecting a compound annual growth rate (CAGR) of 29.6% over the period. A significant driver behind this rise is the proliferation of real-time payment systems, which are being increasingly targeted by fraudsters. In the UAE, APP scam losses associated with real-time payments are projected to account for nearly 90% of total scam losses by 2028, growing at a CAGR of 30.3% from 2023.
APP scams leverage trust-based manipulation to deceive individuals into voluntarily transferring funds to fraudsters. These scams often appear legitimate, bypassing traditional fraud detection mechanisms. The immediacy of real-time payments has become a key enabler for scammers, as stolen funds can be swiftly moved out of reach before detection or intervention. The UAE, recognized as the fastest-growing real-time payments market globally, has seen a sharp increase in sophisticated scams, particularly investment-related fraud. Investment scams account for 29% of scams in the UAE, while nearly 20% of victims fall prey to advance payment fraud. These trends align with patterns observed across the Middle East, including Saudi Arabia, where APP scam losses are projected to grow at a CAGR of 26% from 2022 to 2027.
The rising prevalence of APP scams has profound implications for the financial sector in the UAE. One in five scam victims opts to sever ties with their financial institutions after falling victim to fraud, highlighting the urgent need for banks and financial service providers to adopt robust strategies to protect consumers and sustain trust.
Santhosh Rao, Senior Vice President of Sales – MEASA at ACI Worldwide, underscored the dual-edged nature of real-time payment systems in the UAE, such as the government-backed Aani platform. While these systems offer unparalleled convenience and efficiency, they also present new vulnerabilities. He emphasized that the rapid growth of AI-driven financial crimes necessitates a fundamental shift in fraud prevention strategies to address evolving threats effectively.
To combat the rise of APP scams, the Scamscope report advocates the adoption of advanced, AI-powered fraud management systems. These systems can analyze transaction patterns, detect anomalies, and enable real-time collaboration among financial institutions. Furthermore, enhancing consumer education and fostering international cooperation are critical to mitigating financial losses and reinforcing public trust as the UAE transitions toward a digital, cashless economy.
As APP scams escalate, the UAE faces a pivotal moment in safeguarding its financial ecosystem. Proactive measures, including innovative fraud detection technologies, improved regulatory frameworks, and heightened public awareness, are essential to curb the financial and reputational damage caused by these sophisticated scams. By addressing these challenges, the UAE can strengthen its position as a leader in digital finance while ensuring a secure and trustworthy environment for consumers and businesses alike.