Do Bank Warnings Prevent APP Fraud? Evaluating the Effectiveness of Existing Bank Warnings in Preventing Authorized Push Payment Fraud in the Uk and Saudi Arabia.

Abstract

Background: Authorized Push Payment (APP) fraud is a rising global threat, exploiting trust and emotional to deceive victims into authorising fraudulent transfers. While banks rely heavily on notifications and bank warnings as the main preventive measure, limited research has examined their effectiveness, particularly in Saudi Arabia.

Aim: The aim of this research is to evaluate the effectiveness of bank-issued warnings in preventing APP fraud in Saudi Arabia and the UK, with a focus on comparing the impact of technical safeguards such as OTPs against dynamic, interactive warnings like Confirmation of Payee and call-to-action prompts.

Method: A Qualtrics survey (n = 137) simulated realistic banking scenarios such as static and dynamic warnings, Confirmation of Payee, and two-factor authentication. Behavioural and attitudinal responses were analysed using statistical tests.

Results: The survey found that layered in-app warnings strongly reduced risky transfers. Compared to an ATM baseline with no warning (57.4% cancelled), cancellation rose with CoP+CTA (86.9%), Fixed Fee (85.8%), and peaked when all warnings were combined (96.1%); OTP+Call alone was modest (58.5%). Most participants valued notifications, though effectiveness decreased when alerts were repetitive or mixed with marketing.

Conclusion: Banking warnings raise awareness but are insufficient alone. Drawing on Situational Crime Prevention, the study recommends combining technical safeguards with behavioural strategies and formally classifying APP fraud in Saudi Arabia to strengthen countermeasures.