New Delhi: Amid a sharp rise in digital financial frauds, a new report has flagged social media platforms as a major gateway for Authorised Push Payment (APP) scams, raising concerns over accountability in the digital ecosystem. The study highlights how fraudsters are increasingly using online platforms to initiate scams, prompting fresh calls for shared responsibility between banks, tech companies, and regulators.
The report, titled “The New Origin of APP Fraud” and released by the The Payments Association, points out that a significant portion of financial fraud cases now originate on social media platforms through deceptive advertisements and posts. Victims are often lured in through seemingly legitimate offers before being drawn into private conversations on messaging apps, where the fraud is executed.
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APP fraud refers to a method where victims are manipulated into willingly transferring money to fraudulent accounts. Unlike traditional hacking, these scams rely heavily on psychological tactics such as trust-building, urgency, and false promises. According to the report, fraudsters frequently use platforms owned by Meta, including Facebook and Instagram, to display fake advertisements. Once initial contact is made, conversations typically move to private messaging services like WhatsApp or Telegram, where fraudsters operate with less scrutiny.
The scale of the problem is significant. The report notes that in the first half of 2025 alone, losses from APP fraud in the United Kingdom exceeded £250 million (approximately ₹2,600 crore). Notably, nearly two-thirds of these cases were traced back to online platforms, underlining their growing role as the starting point for such scams.
Experts believe that a major issue lies in the current regulatory imbalance. While banks and payment service providers are often required to compensate victims for financial losses, social media platforms—where many scams originate—are not held to the same level of accountability. This gap, the report argues, allows fraudsters to exploit digital platforms with relatively limited consequences.
To address these systemic weaknesses, the report proposes a “shared liability” framework. Under this model, responsibility for preventing fraud would be distributed across all stakeholders involved in the transaction chain, including tech platforms. The idea is to ensure that platforms hosting fraudulent content are also held accountable, particularly in cases where repeated violations occur.
Among the key recommendations are mandatory identity verification for online advertisers, strict timelines for removing fraudulent content, and financial penalties for platforms that fail to act against scam-related activities. The report also emphasizes the need for real-time data sharing between financial institutions and technology companies to improve early detection and prevention of fraud.
Another critical observation is that current fraud prevention efforts are largely focused on the final stage of the transaction—when money is being transferred. However, by this point, the victim has already been manipulated. The report stresses that effective prevention must begin at the source, which is increasingly social media.
Cybersecurity experts echo this concern, noting that social engineering has become the primary tool for modern cybercriminals. By exploiting human behavior rather than technical vulnerabilities, fraudsters are able to bypass even robust security systems.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh says, “Cyber criminals today rely more on human manipulation than technology. Fake advertisements and profiles on social media help them build trust before gradually pushing victims into making financial decisions. Unless strict controls are enforced at the source platforms, it will remain difficult to fully curb such frauds.”
Globally, the debate around platform accountability is gaining momentum, with governments exploring stricter regulatory frameworks to ensure user safety. The findings of this report reinforce the need for a coordinated approach involving financial institutions, technology companies, and policymakers.
As digital fraud continues to evolve, the report makes it clear that strengthening banking systems alone will not be enough. A comprehensive strategy—focused on prevention at the source, stronger regulations, and shared accountability—will be essential to effectively tackle the growing threat of APP scams.
