How to Spot and Report a Payment Scam in 2026 — Before It's Too Late

Criminals stole £1.28 billion through payment fraud in 2025 — an increase of four per cent on the year before. On average, eight people were defrauded every minute, with nearly £2,500 stolen every 60 seconds. Authorised Push Payment (APP) fraud — where victims are tricked into transferring money themselves — now accounts for £576.4 million of total losses, with investment fraud jumping 40% year-on-year. Knowing what these scams look like — and exactly what to do — is your best defence.

The Most Common Scams in 2026

Purchase Scams account for 71% of all APP fraud cases. You pay for something online — a puppy, concert tickets, a second-hand car — and it never arrives. Scammers have become adept at creating professional-looking fake listings on Facebook Marketplace, Gumtree, and even legitimate platforms with stolen seller accounts.

Investment Fraud is the highest-value category at £221.5 million in losses. Victims are contacted with offers of guaranteed returns on crypto, forex, or stocks. The FCA has warned repeatedly about unauthorised firms operating in this space — in June 2026 alone, it published warnings about firms including Profitinvest, Erion Group, and JadeTrax.

Impersonation Scams involve fraudsters posing as HMRC, your bank, the police, or even Ofgem. They may claim your account has been compromised and ask you to move funds to a "safe account" (which they control).

SIM Swap Fraud occurs when a criminal convinces your mobile network to transfer your number to a SIM they control, intercepting your one-time passcodes and accessing your bank accounts.

How to Spot a Scam — Red Flags

• Urgency: "You must act now or lose your money." Legitimate organisations never rush you.
• Unusual payment methods: Any request to pay by bank transfer, gift cards, or cryptocurrency should trigger immediate suspicion.
• Too good to be true: Returns of 15%, 20%, or more on investments are a scam signal, not an opportunity.
• Unsolicited contact: Cold calls, texts, or emails you weren't expecting — especially if they already know some of your personal details (often from data breaches).
• Requests for personal information: Your bank will never ask for your full PIN, password, or one-time passcode.
• The FCA warning list: Before sending any money to an investment firm, check the FCA's Financial Services Register and its list of unauthorised firms.

Step-by-Step: What to Do If You're Targeted

Step 1 — Stop and Think (Take Five)

The Take Five to Stop Fraud campaign backed by UK Finance, the FCA, and the government has one simple message: before transferring money or sharing personal details, stop, challenge, and protect. If you feel pressured or panicked, that is the scam working exactly as intended.

Step 2 — Verify Independently

If someone contacts you claiming to be your bank or HMRC, hang up or close the message and call the organisation back using a number from their official website. Do not use the number they gave you.

Step 3 — Check the FCA Register

Before handing any money to an investment provider, check register.fca.org.uk to confirm they are authorised. Also check the FCA warning list of known unauthorised firms.

Step 4 — Report It Immediately

If you think you've been scammed: contact your bank immediately — call the number on the back of your card. Banks must investigate all APP fraud claims and in most cases are required to reimburse victims under the mandatory reimbursement rules introduced in 2024. Report to Action Fraud at reportfraud.police.uk and to the FCA at fca.org.uk/consumers/reporting-scams.

Step 5 — Protect Your Accounts Going Forward

• Enable two-factor authentication (2FA) on all financial accounts, using an authenticator app rather than SMS where possible
• Ask your mobile network to add a secondary PIN to prevent SIM swap attacks
• Use your bank's instant card freeze feature if you suspect unauthorised activity
• Never share a one-time passcode with anyone — your bank will never ask for it

International Comparison

In Australia, scam losses reached AUD $2.74 billion in 2023. The Australian government has introduced the Scams Prevention Framework, which like the UK model places obligations on banks and digital platforms to prevent fraud. In the United States, the FTC received 2.6 million fraud reports in 2023, with investment scams the most costly category — mirroring the UK pattern exactly.

Key Numbers

• £1.28 billion — stolen through payment fraud in 2025
• £576.4 million — APP fraud losses
• 71% — proportion of APP cases that are purchase scams
• 13 months — time limit for reporting an unauthorised payment to your bank

Sources

• UK Finance — Fraud Report 2026 Press Release
• Neopay — UK Finance Fraud Report 2026
• FCA — Protect Yourself from Scams
• Action Fraud — Report Fraud

Educational content only — not financial advice.