Criminals stole £1.28 billion through payment fraud in 2025, a 4% increase on the previous year, according to UK Finance’s latest Annual Fraud Report. The trade body says the figures show fraud “operating on an industrial scale” and reiterates its warning that economic crime is now a national security issue rather than simply a financial services problem.
The report, based on data from banks and other finance firms, also highlights the sheer volume of incidents, with more than four million fraud cases involving financial loss recorded last year – averaging nearly eight incidents every minute across the UK. Losses linked to investment scams and online purchase scams both hit record levels as criminals refined their tactics and widened their reach.
How criminals are targeting victims
Two‑thirds of authorised push payment (APP) fraud cases now start online, with a further 17% originating via telecommunication networks, underscoring the central role of social media, search platforms and messaging services in enabling scams. APP fraud typically involves victims being tricked into transferring money themselves, often after being persuaded they are dealing with a bank, a trusted business or a legitimate investment.
Industry data shows that criminals are increasingly using sophisticated techniques, including convincing fake websites, cloned profiles and, more recently, artificial intelligence tools to generate realistic emails, voices and imagery. Banks report sharp rises in losses from investment scams and romance scams, where victims are groomed over time and encouraged to send large sums, sometimes over many months.
Call for tougher action from tech and telecoms
UK Finance argues that the burden of tackling fraud cannot sit with banks alone, particularly when the vast majority of scams are initiated on platforms they do not control. Building on the UK government’s Fraud Strategy, the organisation is calling for stronger, enforceable responsibilities on online platforms, social media companies and telecoms operators to prevent fraudsters from using their services.
Ruth Ray, Managing Director of Economic Crime at UK Finance, said: “Fraud operates on an industrial scale, harming people, businesses and the UK economy, typically funding serious and organised crime in the UK and globally.
In Case You Missed It:
“The financial sector invests huge amounts in protecting customers, but we cannot be the only line of defence. Almost £1.3 billion was stolen again last year and it is clear we are not tackling the underlying problem effectively enough.
“Given most APP fraud still starts via online tech platforms or via telecoms, we urgently need stronger, enforceable responsibilities to be placed on these sectors. This is the way to reduce the harm and stop criminals and tech companies profiting from these devastating crimes.”
The industry wants measures such as tighter checks on digital advertising, faster takedowns of fraudulent content and stronger controls on spoofed phone numbers, alongside continued investment in banking security systems. Finance firms say they are already blocking significant sums – previous UK Finance data shows hundreds of millions of pounds in attempted unauthorised fraud is stopped each year – but stress that upstream prevention is critical to reducing both losses and the human impact on victims.
