Authorized push payment (APP) scam losses are on the rise, expected to climb to US$7.6 billion by 2028 across six leading real-time payment markets (U.S., U.K., India, Brazil, Australia and UAE), according to the latest Scamscope report from ACI Worldwide , an original innovator in global payments technology, in partnership with GlobalData, a leading data and analytics company. According to the report, the UAE saw US$8.3 million in APP scam losses and is expected to hit US$30.3 million by 2028, with a 2023-2028 compound annual growth rate (CAGR) of 29.6%.
APP scams are a form of trust-based manipulation, deceiving individuals into willingly transferring funds to fraudsters. These transactions often appear legitimate and evade traditional fraud detection systems. 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, as scammers are eager to exploit the immediacy of real-time transactions to steal funds before they can be traced. By 2028, APP scam losses through real-time payments in the UAE are expected to hit US$26.8 million, accounting for almost 90% of total scam losses (a 2023-2028 CAGR of 30.3%).
“The UAE government has demonstrated commendable vision in introducing its real-time payments platform, Aani, which offers incredible convenience to businesses and consumers. Real-time payment rails have the potential to be the most trusted and secure payment rails, but the proliferation of real-time payments and the concurrent rise of AI-driven financial crimes necessitate a paradigm shift in fraud strategies to stay ahead of evolving threats.” Santhosh Rao, Senior Vice President, Sales – MEASA, ACI Worldwide.
Overall, while the UAE has the lowest APP scam losses among all the markets analysed in the report, the country is witnessing a rise in sophisticated scams, particularly investment scams. 29% of victims in the UAE fall prey to investments scams, and nearly one in five are victims of advance payment scams. This situation is mirrored in other Middle East countries, most notably Saudi Arabia, where last year’s Scamscope report showed a surge in investment scams, with overall APP scam losses projected to growth at a 26% CAGR between 2022 to 2027.
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.
The rise of APP scams in the UAE, driven by real-time payments and AI-powered fraud, poses new challenges for financial institutions, consumers and regulators. ACI’s Scamscope report advocates AI-driven fraud management systems to help analyse transaction data, flag anomalies and facilitate real-time collaboration among financial institutions. Continuing efforts to improve education and cross-border collaboration will also help the UAE to reduce financial losses and reinforce public trust as it moves towards a digital, cashless economy.
