Open Banking payments fraud rates lower than wider UK payments industry

Fraud Rate Open Banking

1 in 6,000

The proportion of fraudulent Open Banking payments in 2025.

Fraud Rate Wider Industry

1 in 2,500

The proportion of fraudulent payments in the wider UK payments industry.

Overall Fraud Volume Q1 2026

0.024%

The percentage of overall fraud volume in Q1 2026, indicating an increase from the previous year.

§ 01 Executive Snapshot

What: Open Banking payments fraud rates are lower than the wider UK payments industry benchmarks.
Who: Open Banking Limited (OBL), account providers representing over 60% of Open Banking payment volumes.
Why it matters: This highlights the effectiveness of Open Banking in preventing fraud, despite evolving threats in the payments landscape.

In 2025, approximately one in 6,000 Open Banking payments were fraudulent, compared to one in 2,500 across the wider payments industry.
Overall fraud volume increased to 0.024% in Q1 2026, marking a rise from the same period a year earlier.
Authorised Push Payment (APP) fraud accounts for more than two-thirds of Open Banking related fraud cases.

The Open Banking Payments & Fraud Monitor provides comprehensive insights into fraud trends, essential for understanding the evolving landscape of payment fraud.
Continuous growth in Open Banking adoption necessitates ongoing collaboration and data sharing to mitigate emerging fraud risks.

The lower fraud rates in Open Banking could lead to increased adoption, enhancing consumer trust in this payment method.
Ongoing evolution of fraud tactics indicates that industry stakeholders must remain vigilant and proactive in fraud prevention strategies.

The rise in sophisticated social engineering and impersonation scams poses a significant risk to Open Banking and could undermine consumer confidence.
Dependence on collaboration and information sharing may be challenged by competitive interests among financial institutions.

The next edition of the Open Banking Payments & Fraud Monitor is expected to provide further insights into fraud trends, scheduled for biannual publication.
Future developments in fraud detection tools like Transaction Risk Indicators (TRIs) will be crucial in adapting to emerging fraud patterns.

§ 07

What are the fraud rates for Open Banking payments compared to the wider UK payments industry?

Open Banking payments fraud rates are approximately one in 6,000, while the wider payments industry has a rate of one in 2,500.

Why is the effectiveness of Open Banking in preventing fraud significant?

It highlights the ability of Open Banking to mitigate fraud risks, which is crucial as threats in the payments landscape continue to evolve.

How does Authorised Push Payment (APP) fraud relate to Open Banking?

APP fraud accounts for more than two-thirds of Open Banking related fraud cases.

When is the next edition of the Open Banking Payments & Fraud Monitor expected to be published?

The next edition is scheduled for biannual publication, providing further insights into fraud trends.