Authorized push payment (APP) scam losses are increasing and are projected to reach $7.6 billion by 2028 across six major real-time payment markets, including the US, UK, India, Brazil, Australia, and the UAE, according to the recent Scamscope report by ACI Worldwide (NASDAQ: ACIW), a pioneer in global payments technology, in collaboration with GlobalData, a prominent data and analytics firm.
The report highlights that the UAE experienced $8.3 million in APP scam losses and is anticipated to reach $30.3 million by 2028, with a compound annual growth rate (CAGR) of 29.6% between 2023 and 2028. APP scams involve trust-based manipulation, tricking individuals into transferring funds voluntarily to fraudsters. These transactions often seem legitimate and bypass conventional fraud detection systems.
With the Middle East being the fastest-growing real-time payments market globally, the report identifies a surge in real-time payment APP scams, as scammers exploit the immediacy of these transactions to steal funds before they can be traced. By 2028, APP scam losses through real-time payments in the UAE are expected to total $26.8 million, representing nearly 90% of total scam losses, with a CAGR of 30.3% from 2023 to 2028.
Although the UAE has the lowest APP scam losses among the markets analysed, the country is seeing a rise in sophisticated scams, particularly investment scams. In the UAE, 29% of victims fall for investment scams, and nearly one in five are victims of advance payment scams. This trend is also observed in other Middle Eastern countries, notably Saudi Arabia, where last year’s Scamscope report indicated a spike in investment scams, with overall APP scam losses projected to grow at a 26% CAGR from 2022 to 2027.
Santhosh Rao, Senior Vice President, Sales – MEASA, ACI Worldwide, emphasized the need for financial institutions to protect customers and maintain trust as scams escalate. "The UAE government has shown remarkable foresight in launching its real-time payments platform, Aani, which provides immense convenience to businesses and consumers. While real-time payment rails have the potential to be the most trusted and secure, the rise of AI-driven financial crimes requires a strategic shift in fraud prevention to stay ahead of evolving threats," he said.
The increase in APP scams in the UAE, fueled by real-time payments and AI-powered fraud, presents new challenges for financial institutions, consumers, and regulators. ACI’s Scamscope report recommends AI-driven fraud management systems to analyse transaction data, identify anomalies, and enable real-time collaboration among financial institutions. Enhancing education and fostering cross-border cooperation will also be crucial in reducing financial losses and strengthening public trust as the UAE transitions towards a digital, cashless economy.
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