APP Scam Losses to Hit $7.6B Globally by 2028, UAE Sees Sharp Rise

Authorized Push Payment (APP) scam losses are rising rapidly worldwide and are forecasted to reach $7.6 billion by 2028 across six major real-time payment markets, including the U.S., U.K., India, Brazil, Australia, and the UAE. The Scamscope report from ACI Worldwide (NASDAQ: ACIW), a leading global payments technology provider, in partnership with analytics company GlobalData, reveals the growing risks associated with real-time payments.

In the UAE, APP scam losses amounted to $8.3 million in 2023, but this figure is expected to surge to $30.3 million by 2028, with a compound annual growth rate (CAGR) of 29.6%. The report highlights that APP scams linked to real-time payments will account for nearly 90% of the country’s total scam losses by 2028, reaching $26.8 million at a CAGR of 30.3%.

APP scams exploit trust, deceiving victims into willingly transferring funds to fraudsters. These scams often bypass traditional fraud detection systems due to their seemingly legitimate nature. The Middle East, being the fastest-growing real-time payments market globally, has seen an alarming rise in APP scams, with fraudsters leveraging the immediacy of transactions to avoid detection.

While the UAE has the lowest APP scam losses among the six markets analyzed, the country is witnessing an increase in sophisticated scams, particularly investment scams, which account for 29% of cases. Nearly one in five victims in the UAE also falls prey to advance payment scams. Similar trends are seen in Saudi Arabia, where investment scams have surged, and APP scam losses are projected to grow at a 26% CAGR between 2022 and 2027.

The rise in APP scams in the UAE has led to significant trust issues between consumers and financial institutions. One in five victims reportedly ends their relationship with their bank or financial service provider after falling victim to a scam. This highlights the urgent need for financial institutions to strengthen fraud prevention measures to protect consumers and retain trust.

Santhosh Rao, Senior Vice President of Sales – MEASA at ACI Worldwide, said, “The UAE government’s real-time payments platform, Aani, offers incredible convenience to businesses and consumers. However, the rise of real-time payments and AI-driven financial crimes demands a paradigm shift in fraud prevention strategies to combat these evolving threats.”

The Scamscope report advocates for the adoption of AI-driven fraud management systems to analyze transaction data, identify anomalies, and enable real-time collaboration among financial institutions. Public education and cross-border cooperation are also essential to reducing financial losses and maintaining public confidence as the UAE moves towards a cashless digital economy.

The increasing prevalence of APP scams, fueled by real-time payments and AI-driven fraud, presents a growing challenge for the UAE’s financial sector, requiring immediate action to safeguard consumers and the nation’s financial infrastructure.