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Crypto Trends

Woman Pleads Guilty to $7 Billion Bitcoin Fraud Scheme in UK

by admin September 29, 2025



In brief

  • Zhimin Qian pleaded guilty to criminal acquiring and possessing criminal property and awaits sentencing.
  • She defrauded 128,000 Chinese individuals, ultimately turning illegally obtained funds into Bitcoin.
  • That Bitcoin was seized between 2018-2021 and is now valued around $7 billion.

Chinese national Zhimin Qian pleaded guilty to acquiring and possessing criminal property of 61,000 Bitcoin, now valued just shy of $7 billion, in a UK court on Monday. 

The conviction follows a seven-year investigation into international money laundering where it was discovered that Qian, who also goes by Yadi Zhang, organized a large-scale fraudulent investment scheme that defrauded 128,000 individuals. 

“Today’s guilty plea marks the culmination of years of dedicated investigation by the Met’s Economic Crime teams and our partners,” Will Lyne, The Met’s head of economic and cybercrime command, said in a statement.



“This is one of the largest money laundering cases in UK history and among the highest-value cryptocurrency cases globally,” he added “I am extremely proud of the team.”

Qian conducted the scheme between 2014-2017, defrauding individuals and ultimately turning the illegally obtained funds into Bitcoin. In 2018, she fled China and entered the UK with false documentation and later attempted to launder the money through property purchases and with the help of a conspirator, Jian Wen. 

The Met was able to seize 61,000 Bitcoin between 2018 and 2021 in what it now calls the world’s largest crypto seizure. Wen was convicted of money laundering last year, and was ordered to pay more than $3 million for her role. She was sentenced to more than six years in prison.

Civil proceedings for the recovered funds are now ongoing, but a UK-based legal partner recently told Decrypt it will be a “considerable challenge” for Chinese investors to demonstrate legitimate proprietary claims to the funds. 

“Bitcoin and other cryptocurrencies are increasingly being used by organized criminals to disguise and transfer assets, so that fraudsters may enjoy the benefits of their criminal conduct,” said Crown Prosecution Services Deputy Chief Crown Prosecutor Robin Weyell, in a statement. 

“The CPS is committed to working closely with law enforcement and investigatory authorities, to bring to justice individuals and companies who engage in laundering criminal proceeds of a cryptocurrency fraud,” she added. 

Qian was remanded into custody and will be sentenced at a later date following her guilty plea. 

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September 29, 2025 0 comments
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NFT Gaming

Tennessee Couple Hit With $6.8 Million Penalty for ‘Blessings of God Thru Crypto’ Fraud

by admin September 27, 2025



In brief

  • Michael and Amanda Griffis pleaded guilty to defrauding 145 investors out of $6.5 million through their fraudulent “Blessings of God Thru Crypto” commodity pool.
  • The scheme involved a fake trading platform designed to look like the legitimate Apex trading platform and guidance from the mysterious “Coach Wendy,” whose identity remains unknown.
  • Victims were duped into believing their funds would generate high returns through crypto futures trading, but more than $4 million vanished through an illegitimate overseas exchange.

A Tennessee couple who exploited their real estate connections to bilk investors out of millions through a fake crypto trading scheme has been ordered to pay over $6.8 million in restitution and penalties.

The Commodity Futures Trading Commission announced Thursday that the U.S. District Court for the Middle District of Tennessee entered a consent order against Michael and Amanda Griffis, Clarksville real estate agents who operated the fraudulent “Blessings of God Thru Crypto” commodity pool from 2021 to 2023. 

The couple was first charged by the CFTC in July 2023.

The regulator said the couple used their real estate business connections to persuade 145 investors to hand over $6.5 million, promising the money would generate profits through crypto futures trading on what they claimed was the legitimate Apex platform under the supervision of the mysterious “Coach Wendy.”



Under the court order, the couple must pay more than $5.5 million back to the victims and face an additional $1.35 million “civil monetary penalty.”

The Griffises funneled money into a sham platform modeled on an overseas exchange, while the true identity of “Coach Wendy” remains unknown to investigators.

Over $4 million was funneled offshore after hitting the fake exchange, while the rest covered the couple’s personal debts and expenses. Only about $855,000 was paid back to participants in Ponzi-style payouts, the CFTC said.

The ruling also imposes lifetime bans preventing them from commodity trading or CFTC registration, while barring future violations of federal commodity laws.

This case is part of a troubling pattern of fraudsters exploiting trust within community groups, like a Denver pastor and his wife that were recently ordered to repay $3.39 million after raising millions for worthless church tokens. Other examples include a Long Island man hit with a $228 million CFTC judgment, and a nine-year prison sentence for a Ponzi scheme operator that preyed on his Haitian church community.

In the latest case, investors may have ignored warning signs that could have indicated the fraud in question.

“An exchange website without any registered company details is a clear red flag that users could have noticed,” Karan Pujara, founder of scam defense platform ScamBuzzer, told Decrypt. 

Pujara said fraudsters often chase “quick money,” aiming to leave before being caught—and warned that in crypto, once funds are lost, they can move “across borders quickly,” making recovery difficult.

Even regulated platforms can fail investors, as seen with FTX, which held licenses but still misused customer funds, he noted.

Pujara advised investors to spread risk by using multiple exchanges and hardware wallets, noting, “Those who diversified kept their losses manageable, while those who concentrated all their funds in one place faced major losses.”

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September 27, 2025 0 comments
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GameFi Guides

Stricter Rules To Combat Rising Digital Payments Fraud

by admin September 26, 2025


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

India has launched a sharp clampdown on online payment scams, ordering tougher checks and new rules that aim to cut the rising tide of fraud. Based on reports, regulators and payment networks moved after authorities recorded big jumps in both the number of cases and the money lost to scams last year.

India: RBI And NPCI Move Fast

Regulators have pushed several changes into the banking and payments system. According to published figures, incidents tied to Unified Payments Interface or UPI more than doubled from about 7.25 lakh ($8,700) to 13.42 lakh ($16,200) in fiscal year 2023-24.

Reported losses rose too, from ₹573 crore ($69 million) the year before to ₹1,087 crore ($131 million) in 2023-24. The central bank has allowed risk-based additional checks for certain transactions, and NPCI has told banks and apps to block pull or collect requests on UPI from October 1, 2025, a move meant to shut a common scam vector.

The Reserve Bank of India (@RBI) releases new guidelines on authentication for #digital payment transactions, set to take effect from April 1, 2026.

The framework mandates two-factor authentication for all digital payments, though no specific method is enforced.

The central… pic.twitter.com/NH7xKuMmzm

— All India Radio News (@airnewsalerts) September 25, 2025

New Authentication And Domain Rules

One of the headline changes is a requirement for two-factor authentication for payments, set to come into effect on April 1, 2026. Banks and payment firms will need to apply at least two methods of ID for transactions — such as biometrics, device tokens, or passphrases — while SMS OTPs will still be allowed in some cases.

Reports also say the industry will be asked to reserve clear, trusted web domains for banks and finance firms — examples given include “bank.in” for banks and “fin.in” for non-bank financial companies — to make phishing sites easier to spot and block.

Total crypto market cap currently at $3.67 trillion. Chart: TradingView

How Users And Banks Will Be Affected

The new rules are meant to stop impersonation scams, fake calls that pretend to be law enforcement, and other social engineering tricks that send money out of accounts.

A special Cyber Fraud Mitigation Centre and the Indian Cyber Crime Coordination Centre will coordinate responses, and a suspect registry drawn from the national cybercrime portal is being used to track suspicious accounts and identities.

Banks and small operators that run Aadhaar-enabled payment services will face stricter due diligence requirements for their agents and terminals.

Costs, Complexity And The Rural Gap

Banks and tech providers must upgrade systems to run the extra checks and keep records. That will add cost and complexity, especially for smaller firms and rural operators that rely on older devices.

Users may face more steps when they pay, particularly for cross-border or unusual transactions. Reports warn that fraudsters often change tactics after rules tighten, so the measures will need constant review and active enforcement to stay effective.

Featured image from Unsplash, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





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September 26, 2025 0 comments
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India’s It Department Uncovers $19M Crypto Fraud Targeting Farmers
GameFi Guides

India’s IT Department Uncovers $19M Crypto Fraud Targeting Farmers

by admin September 26, 2025



The Income Tax (IT) Department has unwrapped a fraudulent crypto scheme in the southern states of Telangana and Andhra Pradesh. The scheme involved identity theft, where the fraudsters used the identities of unsuspecting ordinary citizens to carry out trading activities.

According to a Times of India report, this was uncovered after the Central Board of Direct Taxes (CBDT) flagged 20 suspicious cases. Following this lead, officials from the Income Tax Department visited several remote villages across Telangana and Andhra Pradesh. Investigators have been able to verify nine cases where the trading amount reached INR 170 crores, approximately $19.31 million.

In each case, investigators found that ordinary citizens such as farmers and delivery workers were linked to high-value crypto trades. Several people whose names came up in the investigation were astonished when they were approached by officials. When questioned, these individuals denied any involvement, revealing that they had zero knowledge about cryptocurrencies and that they also had no idea their IDs were being used for trading cryptocurrencies. 

From farms to fraud 

The investigators carried out a probe in more than five districts in Andhra Pradesh and Telangana. Sources also confirmed that most individuals linked to these trades are from lower socioeconomic strata, having no financial literacy, let alone knowledge of cryptocurrencies. 

S Narasimha, a farmer whose identity was stolen for the purchase of a cryptocurrency worth INR 9.5 crore, claimed, “We don’t even know what Bitcoin is.” In another case, Shiva Pamula, a food delivery partner being shown to carry out massive volume trades, said he didn’t have an idea about crypto or the trading. 

Larger identity theft suspected 

The IT officials have cautioned that these verified nine cases may represent only a small fraction of a far larger fraudulent scheme. The racket appears to operate via the theft or falsification of Permanent Account Number (PAN) cards, an identification card issued by the IT department, and other personal details of ordinary citizens. All individuals whose names were used reportedly were non-filers of income tax returns, suggesting the misuse was designed to avoid detection through standard tax filings. The case raises serious concerns about fraud, cybersecurity, and regulatory oversight in India’s rapidly growing crypto sector. 

Crypto crimes on the rise across the globe

This is the latest addition to the increasing crypto-related crimes across the world. European nations such as France and the UK have become a hotspot for crypto-related crimes. Earlier this month, the French police detained seven people in relation to the kidnapping of a 20-year-old Swiss man. 

Additionally, in August, an Indian court sentenced a former Parliamentarian and senior police officers to life imprisonment in connection with a 2018 Bitcoin extortion and kidnapping case. These incidents highlight the call for strict laws for crypto space. 

Also Read: XPL Price Surges 58% as Plasma Mainnet Goes Live with Tether



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September 26, 2025 0 comments
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Circle Examines Ways to Reverse Transactions to Counter Fraud, Disputes: FT
NFT Gaming

Circle Examines Ways to Reverse Transactions to Counter Fraud, Disputes: FT

by admin September 26, 2025



Circle Internet, (CRCL) is examining ways of reversing transactions involving its stablecoin, USDC, the Financial Times (FT) reported on Thursday.

The issuer of the second-largest stablecoin is “thinking through … whether or not there’s the possibility of reversibility of transactions,” the company’s president, Heath Tarbert, said in an interview with the newspaper.

Stablecoins, tokens pegged to the value of a traditional financial (TradFi) asset such as a fiat currency, are an important cog in the cryptocurrency machine, offering users a hedge against the volatility than can hit tokens like BTC$109,694.70 and ETH$3,960.01. They’re also finding popularity as a method for international payments. The sector has a market cap of about $300 billion, according to data tracked by CoinGecko. USDC alone has a market cap of $74 billion; market leader Tether’s USDT has $173 billion.

Tarbert said that allowing transactions to be refunded in case of fraud or disputes, similar to what is possible in TradFi, would help push stablecoins into the mainstream.

Such a development may rub certain crypto purists up the wrong way, because they consider settlement finality to be non-negotiable. Introducing the possibility of reversing transactions could rely on the the arbitration of a central authority, which many believe is antithesis of the decentralization that lies at cryptocurrency’s core.

“At the same time, we want settlement finality,” Tarbert said. “So there’s an inherent tension there between being able to transfer something immediately, but having it be irrevocable.”

Circle has been at the forefront of growing adoption of stablecoins in the U.S. this year following its successful initial public offering (IPO) in June.

The company did not immediately respond to CoinDesk’s request for further comment.



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September 26, 2025 0 comments
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X Exposes Crypto Scam Bribery Network Amid Rising Fraud
GameFi Guides

X Exposes Crypto Scam Bribery Network Amid Rising Fraud

by admin September 20, 2025



X, the social media platform owned by Elon Musk, announced on Friday that it has taken decisive action against a bribery network linked to crypto scams. According to a statement posted on the official X Global Government Affairs account, suspended users involved in cryptocurrency scams and platform manipulation attempted to pay middlemen to bribe employees to reinstate their banned accounts.

The offenders were reportedly connected to larger criminal networks and leveraged multiple platforms, including Instagram, TikTok, YouTube, Minecraft, and Roblox. 

X has exposed and is taking strong action against a bribery network targeting our platform. Suspended accounts involved in crypto scams and platform manipulation paid middlemen to attempt to bribe employees to reinstate their suspended accounts. These perpetrators exploit social…

— Global Government Affairs (@GlobalAffairs) September 19, 2025

According to the post, these offenders were connected to larger criminal networks, one of which is referred to as “The Com.” Legal actions are now underway, with X providing full backing to law enforcement.

Scam Networks Extend Beyond X

Crypto scams have taken off on various platforms, with X becoming a prime target right alongside Telegram and Discord. Even though there’s been an effort to tighten moderation, these scams are still running rampant, which is seriously undermining trust within the community. 

Plus, X’s popularity among crypto fans makes it a prime place for fraudsters looking to take advantage of investors and users.

The scandal broke just as Sam Bankman-Fried’s X account showed unusual activity. His account, dormant for months, suddenly began following others. That sparked speculation about his potential involvement or early release from prison. 

However, there is no official confirmation of any release. The FTX bankruptcy process continues, with another creditor payout scheduled for September 30. Moreover, wallets linked to Alameda Research still receive Solana allocations, but those funds support settlements, not trades.

Rising Concerns on Financial Fraud

The issue stretches beyond social media manipulation. A recent House Financial Services Committee hearing examined fraud’s growing sophistication. Experts warned that over 75% of cybercrime originates from scams and social engineering. Ian Bednowitz of LifeLock stressed that fraud is escalating “at an exponential pace.” 

Additionally, Paul Benda of the ABA highlighted fraudsters’ use of both generative AI and traditional check theft. Hence, banks and regulators now face an increasingly complex fight against coordinated criminal groups.

This case shows how far fraudsters will go to exploit gaps in digital platforms. For users, it’s a reminder to stay cautious online, question unusual activity, and never assume every account is legitimate.

Also Read: Bank of Italy Warns Multi-Issuance Stablecoins Pose EU Risks





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September 20, 2025 0 comments
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NFT Gaming

CEO of ‘Textbook Ponzi’ Pleads Guilty in $200M Bitcoin Fraud Case

by admin September 18, 2025



In brief

  • Prosecutors said Palafox raised $201M by promising daily returns of up to 3%.
  • At least $62.7M in losses were recorded, with funds spent on luxury goods and property.
  • The real issue is fraudulent behavior, not the underlying technology, one observer said.

The chief executive of Praetorian Group International, Ramil Ventura Palafox, pleaded guilty in Virginia this week to wire fraud and money laundering.

Palafox, 60, a dual U.S. and Philippine citizen, led the company as chairman, chief executive, and chief promoter. He oversaw a $200 million Bitcoin Ponzi scheme that prosecutors said had defrauded over 90,000 investors, with total losses of at least $62 million, according to a statement from the Justice Department.

The scheme promised daily returns of 0.5% to 3% through a Bitcoin trading program that never operated at scale. Instead, funds from new participants were recycled to pay earlier investors or spent on personal luxuries.



From December 2019 to October 2021, investors put in at least $201 million, including more than $30 million in fiat and more than 8,100 Bitcoin valued at $171 million at the time.

Palafox also spent around $3 million on 20 luxury cars, more than $6 million on four homes in Las Vegas and Los Angeles, and hundreds of thousands on penthouse suites and designer goods from brands like Rolex, Cartier, and Gucci.

PGI’s online portal showed investors fraudulent account balances and fictitious gains, reinforcing the appearance of safety. Prosecutors said the platform was central to maintaining the illusion until withdrawals mounted and the scheme unraveled.

“Praetorian is a textbook Ponzi scheme MLM structure with promises of unrealistic returns through “AI Bitcoin arbitrage,” and payouts funded by new investors,” Dan Dadybayo, research and strategy lead at Unstoppable Wallet, told Decrypt.

Here, Dadybayo is referring to multi-level marketing (MLM), a sales model where participants earn money both by selling products or services and by recruiting new members into the scheme.

Praetorian’s scheme “fits the same pattern as BitConnect, PlusToken, and OneCoin,” he noted.

Yet unlike larger-scale cases such as those of FTX and Mt. Gox, the Praetorian case “won’t leave a lasting mark,” he said. “It may create more skepticism around the term “arbitrage,” but for regulated players it’s almost a marketing win: they can point to their compliance spending as a safeguard.”

Such schemes keep emerging “because greed is universal, and regulators don’t have the resources to chase everyone,” he added.

Palafox is scheduled for sentencing on February 3, 2026, and faces up to 40 years in prison. He has agreed to restitution of $62.7 million, though actual sentences are typically less than the statutory maximum.

“The lesson for regulators is that the real issue is fraudulent behavior, not the underlying technology,” Dadybayo opined. “Instead of ever-expanding KYC/AML, a better approach is financial literacy, red-flag awareness, and stronger international coordination.”

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September 18, 2025 0 comments
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D.C. AG accuses Bitcoin ATM operator of actively enabling fraudsters
NFT Gaming

DOJ pursues $5m in Bitcoin tied to SIM swap fraud and laundering scheme

by admin September 9, 2025



DOJ prosecutors trace a path of stolen Bitcoin from hijacked phones through a complex web of wallets, culminating in a series of circular transactions at an online casino designed to mask the illicit funds’ origins.

Summary

  • DOJ has filed civil forfeiture to recover $5 million in Bitcoin stolen via SIM swap attacks.
  • The department traced the stolen crypto through multiple wallets and circular transactions at an online casino.
  • Attacks targeted five U.S. victims between October 2022 and March 2023.

According to a September 9 press release by the U.S. Attorney’s Office, District of Columbia, the Department of Justice has initiated a civil forfeiture action targeting a specific cryptocurrency wallet containing 117 BTC.

The complaint alleges the funds are the proceeds of a series of SIM swap attacks that targeted five victims between October 2022 and March 2023. U.S. Attorney Jeanine Ferris Pirro stated that after the initial thefts, the perpetrators moved the Bitcoin through a maze of digital wallets before consolidating the entire $5 million haul into a single address that funded an account at the online casino Stake.com.

How the SIM swap scheme unfolded and the DOJ’s response

DOJ investigators say the perpetrators used SIM swap attacks to bypass standard security measures and gain control of victims’ mobile numbers. With the stolen numbers, they intercepted two-factor authentication codes that allowed them to log in to the victims’ crypto wallets and transfer assets into accounts under their control.

The Justice Department explained that the perpetrators attempted to obscure the origin of the funds by repeatedly cycling the bitcoin through deposits and withdrawals at the casino.

 “Many of these transactions were circular in that they eventually returned funds to their original source, and consistent with money laundering utilized to “clean” proceeds of criminal activity,” the statement read.

The laundering pattern, prosecutors say, made it appear as though the funds were legitimate business activity rather than proceeds of theft. This high-profile case is being prosecuted by Trial Attorneys Jessica Peck and Gaelin Bernstein of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS), alongside Assistant U.S. Attorneys for the District of Columbia.



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September 9, 2025 0 comments
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SEC announces cross-border task force to combat fraud
NFT Gaming

SEC announces cross-border task force to combat fraud

by admin September 6, 2025



The Securities and Exchange Commission has formed a new cross-border task force to combat transnational fraud, including pump-and-dump schemes.

Summary

  • SEC says the task force will help combat transnational fraud, including market manipulation.
  • As well as companies, the task force will go after intermediaries and gatekeepers.

The United States Securities and Exchange Commission will take the fight against fraud to foreign-based companies with a new cross-border task force, the agency said in a press release.

The SEC’s Cross-Border Task Force, the securities watchdog said on Friday, will initially focus on investigating potential violations of U.S. federal securities laws by offshore companies. Areas of attention will include market manipulation, with the SEC noting aspects such as “pump-and-dump” schemes.

Regulators, including the U.S. Commodity Futures Trading Commission, have repeatedly advised investors and market participants, including those in the crypto space, to be cautious about potential pump-and-dump schemes.

Pump-and-dump schemes in crypto

Across the ecosystem, pump-and-dump scams involve thinly-traded altcoins and meme tokens, often by insiders or malicious actors that artificially inflate prices, heavily promote the projects or tokens before dumping on unsuspecting buyers.

Retail users are the biggest victims of the deceptive actions that precede collapses.

While investors must conduct due diligence and remain wary of hype, the SEC says its task force, aimed at strengthening and enhancing the Division of Enforcement’s efforts, will go after entities and individuals whose fraudulent activities harm U.S. investors.

In addition to pump-and-dump schemes, the task force will focus on gatekeepers, including auditors and underwriters, whose efforts make it possible for bad actors to access U.S. capital markets.

“We welcome companies from around the world seeking access to the U.S. capital markets,” SEC chair Paul Atkins said. “But we will not tolerate bad actors – whether companies, intermediaries, gatekeepers or exploitative traders – that attempt to use international borders to frustrate and avoid U.S. investor protections. This new task force will consolidate SEC investigative efforts and allow the SEC to use every available tool to combat transnational fraud.”   

Staff across the agency will collaborate to support the initiative, Atkins added, with the Commission welcoming recommendations of other actions that can enhance protection for U.S. investors. The SEC chair said the regulator will weigh actions such as new disclosure guidance and necessary rule changes.



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September 6, 2025 0 comments
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Gaming Gear

Fraud fears are holding SMBs back from upgrading their payment systems

by admin September 3, 2025



  • Consumers don’t trust businesses that request bank transfers
  • UK SMEs lost £6.15bn directly, and £31.4bn indirectly, in 2024
  • Pay by Bank is secure, quick and helps prevent fraud

Open banking platform Tink says that SMEs in the UK alone lost £6.15 billion in direct sales last year because consumers don’t trust manual bank transfers, with a further £31.4 billion in indirect losses associated with customers not returning.

The news comes as Authorized Push Payment (APP) fraud – where customers are tricked into sending money from their account to a fraudster’s account – accounted for £450 million in losses throughout 2024.

Two in five (41%) consumers now admit to walking away when they’re asked to make a manual bank transfer, with nearly three in five (57%) not trusting businesses that request payments via transfer.


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Consumers are (rightly) concerned about bank transfers

The majority (86%) note feeling uneasy if the account name doesn’t match the business, with a similar number (84%) also concerned if businesses don’t offer multiple payment options.

“Manual bank transfers are often no longer fit for purpose and are holding the UK economy back,” said Ian Morrin, Head of Payments at Tink.

Despite widespread consumer concern, the majority (87%) of SMEs that accept manual bank transfers still rely on them regularly, or as their preferred payment method, highlighting a distinct need for modernization.

This is even more worrying considering that SMEs make up 99.9% of the UK’s business population, leading to billions in losses.

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“Secure, recognised payment methods, whether that’s Pay by Bank, digital wallets or card payments, give customers the confidence to complete purchases while helping businesses improve conversion, reduce fraud risk, and meet rising expectations around payment experience,” Morrin added.

Pay by Bank, enabled by open banking, opens up banks and services to communicate with each other, so instead of entering card details, customers can click a link to send a payment directly from their account, approving it in the app.

Tink describes Pay by Bank as cost-effective for businesses, but it also helps to reduce fraud and losses. With payments also settling more quickly than legacy methods, it can speed up processes on ecommerce platforms and lead to higher levels of satisfaction.

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September 3, 2025 0 comments
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