Vixio Releases APP Fraud Outlook Report

LONDON, 4 March 2025 – Vixio, a leading provider of regulatory intelligence solutions, is proud to release its global Authorised Push Payment (APP Fraud) research. As digital payments increase post-COVID and scammers implement new solutions such as artificial intelligence (AI), the report takes a look at how regulators around the world are seeking to combat fraud.

APP fraud differs from unauthorised fraud, when someone steals your card to make payments, for example, in that it involves voluntarily transferring funds to a fraudster, leading to billions in losses—not to mention the devastating emotional toll on victims.

As scammers become increasingly adept at persuading consumers to willingly send them money, regulators worldwide are implementing various strategies to combat this growing issue.

Both financial institutions and regulators have put fraud prevention and detection in the forefront for 2025. Fraud was ranked as one of the top three priorities for 2025 among payment organisations surveyed in Vixio’s 2025 Payments Compliance Outlook.

Expanding Accountability

As scammers find increasingly sophisticated attack methods, regulators around the world are trying a range of ways to prevent them. Liability can be unclear, given that victims approve transactions. However, regulators have been expanding accountability beyond financial institutions to the digital channels used in fraud scams, such as telecommunications and social media.

For instance:

• UK: PSR’s APP fraud reimbursement rules
• EU: Verification of Payee (VoP) initiative
• Australia: Scams Prevention Framework

“Regulators around the world are taking different approaches to tackling the issue, and it remains to be seen which will be most effective,” explains John Gidla, Head of PaymentsCompliance at Vixio. “However, App Fraud isn't just a regulatory challenge, it's a fundamental consumer protection issue. As the regulations evolve, businesses that fail to prevent fraud, risk losing consumer trust, and some jurisdictions may find their business models unsustainable.”

The report found that Western Europe has been a particularly active region for regulators acting on fraud, with over 100 updates issued between January 2024 and January 2025.

An AI Arms Race

The emergence of AI has added a new dimension to this battle, with both scammers and fraud prevention efforts leveraging advanced technologies. The use of deepfakes and chatbots by fraudsters poses significant challenges, while real-time fraud detection systems are being enhanced to counter these threats. This escalating arms race between scammers and regulators highlights the urgent need for effective solutions.

Download a copy of the APP Fraud Outlook at https://www.vixio.com/research/app-fraud-outlook-2025.

This report is part of Vixio’s Outlook series, which provides subscribers with forward-looking insights and consolidated research on key segments of the global payments industry.

To learn more about simplifying compliance management with Vixio’s award-winning regulatory intelligence solutions, visit vixio.com.

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