emerchantpay has launched its latest research report, Fraud frontiers: How innovation is future-proofing payment security, exploring how fraud is evolving and what it means for merchants.
Based on a survey of 2,000 UK consumers, the report highlights the growing scale and sophistication of financial crime, alongside shifting consumer expectations around security and convenience.
Key findings
- Fraud now accounts for 40% of all crime in the UK, with GBP 2.3 billion lost annually
- 27 million UK consumers have seen an increase in fraud attempts over the past year
- 72% believe scams are more convincing than ever, with AI playing a growing role
- 75% say security is their top priority when shopping online
- GBP 3.5 billion has been lost to friendly fraud in the past 12 months
The findings also underline the growing impact of first party fraud, which continues to rise alongside increasingly sophisticated scam techniques.
Moreover, the research also shows that younger consumers are particularly exposed, while new technologies such as AI are accelerating both fraud risks and prevention capabilities.
Supporting merchants in a changing landscape
As fraud becomes more complex, merchants must balance strong security with seamless customer experiences.
The report outlines how solutions such as Strong Customer Authentication, tokenisation and AI driven risk analysis can help reduce fraud while maintaining conversion rates. It also highlights the importance of working with a trusted payment service provider to stay ahead of emerging threats.
Industry experts also stress that collaboration and education are critical in tackling emerging fraud types such as friendly fraud. Benjamin David, Head of Intelligence at The Payments Association, emphasises “the need for a more preventative approach, supported by smarter technologies that enable faster and more accurate responses across the ecosystem”.
At the same time, consumer awareness remains a key line of defence. Consumer expert Martyn James highlights that “while people are becoming more aware of scams, fraudsters continue to evolve their tactics, making clear communication and ongoing education essential in helping individuals identify and avoid fraudulent activity.”
Download the report
Download the report to explore the full findings and discover how your business can strengthen payment security while supporting growth.
At emerchantpay, we continue to help merchants enhance payment performance, improve security and navigate an increasingly complex fraud landscape.
Contact us to learn more.