ACI Worldwide's Scamscope report predicts Australian authorised push payment scam losses to surpass AUD$1.7 billion by 2028

Authorised push payment (APP) scam losses are on the rise, with losses in Australia predicted to hit AUD$1.76 billion by 2028, 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, losses from APP scams are expected to climb to around AUD$11.8 billion by 2028 across six leading real-time payment markets: the U.S., the U.K., India, Brazil, Australia and the UAE.

APP scams involve scammers tricking their victims into initiating a payment to a destination account under their control. Funds leaving legitimate customers’ accounts will travel through one—or several—mule accounts before being collected by the scammers. This trust-based manipulation makes APP scams particularly challenging to detect as the transaction appears legitimate and bypasses traditional fraud detection systems and controls. The rise of AI has also sparked a new era of scamming, enabling scammers to amplify inherited trust and automate precision attacks with sophistication and at scale.

APP scam losses in Australia have surged dramatically over the past five years, with a compound annual growth rate (CAGR) of 39% from 2018-2023. However, the country has made significant progress in addressing this. Strategic initiatives like Scamwatch and the Scam-Safe Accord, which empower consumers through education and foster industry-wide collaboration and intelligence sharing, are driving a projected decline in scam-related losses over the next five years, reflected in an anticipated CAGR of 7.6% from 2023-2028, significantly lower than the average CAGR of 12% across the six markets studied in the Scamscope report.

The proliferation of real-time payments has supercharged transaction speed, empowering consumers and businesses with convenience and efficiency. However, this immediacy has created a fertile ground for scams where scammers exploit real-time transfers and strike swiftly to steal funds before they can be intercepted. In 2023, APP scam losses through real-time payments in Australia made up 83% of the total APP scam losses. By 2028, APP scam losses through real-time payments in Australia are expected to hit AUD1.547 billion, accounting for almost 88% of total scam losses.

“APP scams pose a critical challenge for financial institutions, threatening to erode consumer trust and drive customer attrition as consumers fall prey to sophisticated schemes. While real-time payment rails hold the promise of being the most trusted and secure platforms, the dual forces of real-time transactions and AI-driven financial crimes necessitate a paradigm shift in fraud prevention strategies. By leveraging advanced AI-powered fraud management solutions, financial institutions can beat scammers at their own game to combat evolving scams and restore consumer confidence in the era of real-time payments,” said Leslie Choo, Senior Vice President, Managing Director – APAC, ACI Worldwide.

“Australia has set a powerful example in the fight against scams, showcasing remarkable vision and progress. Initiatives like the Scam-Safe Accord highlight the banking sector’s steadfast commitment to protecting every Australian’s hard-earned money. Combating scams is a shared responsibility, and as scammers relentlessly innovate new ways to deceive, it’s more crucial than ever for governments, industry players and consumers to stay vigilant and united. Together, we can fortify Australia against scammers and build an impenetrable defence,” said Trent Gunthorpe, General Manager and Head of Pacific at ACI Worldwide.

ACI’s Scamscope report advocates AI-driven fraud management systems to help analyse transaction data, flag anomalies and facilitate a coordinated cross-industry defence to share precise and collective intelligence in real-time. Continuing efforts to improve education and cross-border collaboration will also help Australia reduce financial losses and reinforce public trust as it moves towards a world-class payments system – one that is trusted, accessible and a global benchmark for safety and reliability.

Country data at a glance:

APP scam losses in Australia (in AUD):

• 2023: $1,224 million
• 2028: $1,764 million
• 2023-2028 CAGR: 7.6%

Real-time payment APP scam losses in Australia (in AUD):

• 2023: $1,017 million
• 2028: $1,547 million
• 2023-2028 CAGR: 8.7%

Top 3 APP scam types in Australia :

• Purchase scams
• Investment scams
• Advance payment scams