Finextra claims that this study follows new Payments Systems Regulator rules requiring UK banks to pay up to £85,000 to victims of Authorized Push Payment (APP) frauds.

Notwithstanding these regulations, banks continue to make significant investments in systems intended to postpone payments and promote consumer awareness, contributing to the £4 billion problem of APP fraud.

"The PSR's important new rules have placed more financial burden on banks than ever before to get a handle on the potentially £4 billion problem of APP fraud," said Nico Barawid, co-founder of Tunic Pay, in reference to the existing methods.

In order to slow down payments and make consumers more cautious about who they transfer their money to, the banks have invested a significant amount of money and energy into causing friction. Does the friction function? Not very much. The system is flawed and the scammers benefit if two out of three consumers ignore the warnings they click through. Payment delays do not equate to less fraud.

According to the study, just one-third of UK consumers really follow their banks' anti-fraud policies when making payments, even though 85% of them are aware of them. Additionally, just 32% of respondents think these cautions are helpful when making thoughtful payment selections. Seventy-five percent of consumers dispute the efficacy of banks' delay tactics, which include delaying funds for up to 72 hours.

Customers of online or challenger banks are less responsive than those of typical high street banks, according to the report. Compared to their conventional counterparts, online bank customers are somewhat more likely to believe that the warnings are effective.

The CEO of Tunic Pay, Nicky Goulimis, supports a change to more electronic and proactive solutions. Consumers are fed up with antiquated fraud protection strategies that don't serve their needs. Instead of depending on red tape and delays that eventually place the burden on consumers, they anticipate banks will take the initiative and implement more intelligent, proactive security measures. This change in expectations is a call to action for banks to prioritize real-time detection and more user-friendly safety features, as well as a significant opportunity for FinTechs.