Vixio’s new report reveals the global fight against APP fraud, highlighting regulatory initiatives, market developments, and the use of AI in both fraud prevention and by fraudsters.
As global digital payment volumes continue to soar, so does the risk of fraud. In its newly released APP Fraud Outlook, regulatory intelligence provider Vixio shines a light on the surging issue of authorized push payment (APP) fraud and how regulators worldwide are ramping up efforts to fight it. The research shows that criminals are deploying increasingly sophisticated tactics often harnessing artificial intelligence (AI) to deceive consumers into voluntarily sending them money. The result is billions in annual losses and heightened emotional distress for victims.
APP fraud stands apart from other forms of fraudulent activity because it involves a victim willingly initiating a payment under false pretenses. According to Vixio’s findings, this distinction makes liability trickier to assign, as consumers themselves approve the transaction—even if they are acting under deception. Historically, financial institutions have borne most of the responsibility for preventing fraud, but regulators are now looking to expand accountability beyond banks. The report highlights how social media platforms and telecommunications providers—where many scams begin—are also being pulled into the regulatory net.
In the UK, for instance, the Payment Systems Regulator (PSR) has introduced stringent rules compelling banks to reimburse APP fraud victims, reflecting a consumer-focused shift in liability. Meanwhile, the European Union’s Verification of Payee (VoP) initiative and Australia’s Scams Prevention Framework are designed to reduce the incidence of fraudulent transfers by verifying recipient details in real time and holding various sectors accountable. According to Vixio’s research, Western Europe has been particularly active in this space, with more than 100 regulatory updates issued between January 2024 and January 2025 alone.
An ‘AI Arms Race’ Emerges
One of the most striking aspects of the Vixio report is the growing impact of AI on both sides of the fraud equation. Scammers are deploying deepfake technology and sophisticated chatbots to mimic voices and even video footage of trusted individuals, tricking victims into thinking they are engaging with legitimate sources. At the same time, regulators and financial institutions are countering with advanced, AI-powered real-time detection systems that monitor transaction patterns for anomalies and suspicious behaviours. This battle of rapidly evolving tools underscores the urgent need for solutions that can adapt as quickly as the fraudsters do.
Implications for Businesses
John Gidla, Head of PaymentsCompliance at Vixio, notes that organisations failing to prioritise fraud prevention risk more than just fines. “APP fraud isn’t just a regulatory challenge—it’s a fundamental consumer protection issue,” he says. “Businesses that don’t invest in robust anti-fraud measures may see reputational damage and loss of consumer trust.”
In an era of instant payments and constant connectivity, the stakes are high. Vixio’s APP Fraud Outlook calls for tighter collaboration among regulators, financial institutions, telecoms, and social media platforms. By sharing data, improving verification tools, and deploying AI responsibly, the industry can begin to stem the tide of these increasingly sophisticated scams. With accountability expanding beyond the banking sector, it’s clear that no one entity can tackle APP fraud alone. As digital finance evolves, so too must the defenses that protect consumers—and, ultimately, the entire global payments ecosystem.
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