BY Fraser Tennant
More than 4 million cases of fraud resulting in a financial loss of almost £1.3bn were reported in the UK in 2025, according to a new report by UK Finance.
In its ‘UK Finance Annual Fraud Report 2026’, the association reveals that there were nearly eight cases of fraud per minute across the UK in 2025 – an 11 percent increase on the previous year and a 31 percent rise since 2023.
The scale and sophistication of fraud is also growing rapidly, driven in large part by criminals deploying artificial intelligence (AI). Specifically, investment scams saw losses soar by 40 percent in a year to a new record high, while purchase scams also hit record levels, as did romance fraud.
The report also shows that most authorised push payment (APP) fraud cases – 248,070 cases were recorded in 2025 with losses of £576.4m – start online or through telecommunication networks.
Building on the UK government’s Fraud Strategy 2026-2029, UK Finance is calling for stronger, enforceable responsibilities to be placed on companies, including tackling fraudulent advertising by having Ofcom place stronger and proactive fraud prevention obligations on high-risk platforms.
Also recommended is for online marketplaces to verify their sellers and use secure payment mechanisms rather than allowing separate bank transfers to take place off the platform. This, believes UK Finance, would address purchase fraud, which often starts on marketplace sites.
“Fraud operates on an industrial scale, harming people, businesses and the UK economy, typically funding serious and organised crime in the UK and globally,” said Ruth Ray, managing director of economic crime at UK Finance. “The financial sector invests huge amounts in protecting customers, but we cannot be the only line of defence. It is clear we are not tackling the underlying problem effectively enough.”
To share the burden, Ms Ray is looking to firms in the technology and telecommunications sectors to contribute financially, as well as sharing expertise, intelligence and capabilities to support proactive fraud prevention.
“Given most APP fraud still starts via online technology platforms or via telecoms, we urgently need stronger, enforceable responsibilities to be placed on these sectors,” concluded Ms Ray. “This is the way to reduce the harm and stop criminals and technology companies profiting from these devastating crimes.”