Dubai: Seeing something that looks like a legit payment process? Chances are that it won’t be.
Scams involving authorized push payment (APP) are on the rise, and if sufficient precautions are not adopted could cost $7.6 billion by 2028 in six of the leading markets such as the US, the UK, India, Brazil, Australia and the UAE. This is according to a recent ‘Scamscope’ report from ACI Worldwide.
According to the report, the UAE saw $8.3 million in APP related scam losses.
These scams often lead to individuals willingly transferring funds to accounts managed by fraudsters. These transactions often appear legit and evade traditional fraud detection systems.
‘Real-time’ scams
“With the Middle East being the fastest growing real-time payments market globally, one key finding in the report is the rise in real-time payment APP scams,” says the report. “Scammers are eager to exploit the immediacy of real-time transactions to steal funds before they can be traced.
“As scams accelerate, one in five victims in the UAE choose to end their relationship with their existing financial institutions, underscoring the critical need for the country’s financial institutions to protect customers and maintain trust.”
