UK retail industry ‘lost £11.3bn’ to payment fraud in 2023

The UK retail sector lost £11.3 billion to fraud last year, according to new research.

A study by the Centre for Economic Business and Research and Dutch payments platform Adyen calculated the figure by using data from 26 countries across Europe, America, and APAC.

It also found that on average, enterprises lost £1.4 million to fraudulent attacks, with luxury fashion brands losing double this.

Clothing and accessory retailers lost £2.6 million on average, while health and beauty brands lost £1.1 million.

The research revealed that more than a third of UK companies fell victim to fraudulent activity, cyber-attacks or data leaks over the past 12 months, increasing by 37 per cent in comparison to numbers recorded in the previous year.

Adyen chief commercial officer Roelant Prins warned that criminals are rolling out more sophisticated methods when attacking businesses, including AI.

“Fraud is a pervasive challenge for retailers, and today’s findings demonstrate how it can significantly impact profits” he continued.

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