OBL reports rise in APP fraud affecting open banking payments

Editorial

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More than 15 million people and businesses in the UK – equivalent to nearly one in three adults – used services powered by open banking in the summer months. Payments remain the biggest driver of adoption, with July’s data revealing that the total value has reached £29.89 million.

While fraud linked to open banking payments remains well below the wider industry average, APP scams – which manipulate people into sending money to fraudsters – are becoming more sophistcated.

New figures from Open Banking Limited, based on data from March 2024 to September 2025, shows that fraud affecting open banking payments accounted for just 0.013% of transactions by volume and 0.020% by value in the first half of 2025. This compares favourably to industry averages of 0.045% and 0.027% over the same period.

While overall fraud rates in open banking have fallen since last year, the report highlights a recent uptick driven mainly by APP scams.

These scams now account for 74% of all open banking fraud, with APP fraud at a rate of 0.013% of open banking payment volumes.

Christian Delesalle, head of participant support at OBL, comments: “Open banking remains resilient against fraud, with rates consistently below industry benchmarks. While we are seeing a slight increase in APP fraud, this is a sector-wide challenge and not unique to open banking. Our data-driven approach and industry partnerships are key to maintaining robust defences as adoption grows.”

OBL’s report also points to the growing use of artificial intelligence by criminals to target victims, and the importance of banks and payment providers working together to stay ahead of new threats. The organisation is calling for continued collaboration and innovation to protect consumers and businesses as open banking becomes more widely adopted.