UK Finance: Fraud Losses Flat at £1.17bn as Criminals Shift

UK fraud losses remained stable at £1.17bn (US$2.29bn) in 2024, marking a plateau after years of fluctuation, according to UK Finance's Annual Fraud Report for 2025. The figure represents virtually no change from 2023 levels, despite a 12% increase in confirmed cases to 3.31 million incidents.

The data reveals a shifting landscape of financial crime, with fraudsters adapting their methods as banks tighten security measures. 

Authorised Push Payment (APP) fraud, where victims are tricked into sending money to criminals, declined by 2% in value to £450.7m (US$609m). More significantly, APP cases fell by 20%, marking the lowest figures since 2021.

Ben Donaldson, Managing Director of Economic Crime at UK Finance, attributes this decline to industry investment in fraud prevention technology. 

"The banking and financial services sector contributes more to the fight against fraud than any other,” Ben says. "Our latest figures show that APP fraud has fallen, both the total amount lost and the overall number of cases."

However, the improvement in APP fraud was offset by a surge in unauthorised card fraud, which increased 4% to £572.6m (US$773m). Remote purchase fraud, where criminals use stolen card details for online transactions, drove this increase, with cases rising 22% to 2.58 million incidents.

Mandatory reimbursement takes effect

The Payment Systems Regulator (PSR) introduced mandatory reimbursement rules for APP fraud victims in October 2024. Under these rules, payment service providers must reimburse customers who fall victim to APP scams, with liability split equally between sending and receiving banks.

Preliminary PSR data indicates that 86% of the money lost to APP scams within the policy's scope was returned to victims between October and December 2024. The rules apply to payments up to £85,000 made through the Faster Payments system and CHAPS (Clearing House Automated Payment System).

Industry prevented £1.45bn (US$1.95bn) of unauthorised fraud in 2024, equivalent to 67 pence in every pound attempted. This prevention rate increased 16% from 2023, reflecting enhanced detection systems deployed by banks and payment companies.

Criminal tactics evolve

The data highlights how fraudsters adapt their methods as defences strengthen. Purchase scams, where victims pay for goods that never arrive, accounted for 71% of all APP cases but only 19% of losses. Investment scams showed the opposite pattern, with cases falling 24% but losses increasing 34% to £144.4m (US$195.1m).

Mandy Lamb, managing director for Visa UK & Ireland, notes the relentless nature of criminal adaptation. "This year's fraud figures from UK Finance show encouraging signs, but also underline just how relentless fraudsters continue to be," Lamb says.

"The drop in APP fraud is a step in the right direction, showing that prevention efforts are starting to pay off, but the rise in purchase scams reminds us that criminals are constantly adapting."

The shift towards card fraud reflects criminals' response to tighter APP controls. Remote purchase fraud cases reached their highest level since records began, with 80% occurring through e-commerce channels. 

Industry sources point to increased compromise of one-time passcodes (OTPs), which are used to authenticate transactions and register digital wallets.

Mobile banking showed vulnerability, with fraud losses increasing 3% to £46.7m (US$63m) despite a 9% fall in cases. The industry prevented £247.6m (US$334.5m) of remote banking fraud, representing a 64% prevention rate across internet, telephone and mobile channels.

Industry response intensifies

The Dedicated Card and Payment Crime Unit (DCPCU), funded by banks and operated with police forces, saved £64.9m (US$87.69m)  in 2024 and disrupted 90 organised crime groups. 

This compared with £33m (US$44.59m) saved and 10 groups disrupted in 2023. The unit secured 75 convictions, up from 68 the previous year.

The Banking Protocol, which trains staff to identify potential scam victims, prevented £61.3 million in losses through 12,034 emergency calls and resulted in 136 arrests. 

UK Finance's Intelligence Unit disseminated 2.48 million compromised card numbers to enable protective action by card issuers.

Cross-sector collaboration remains challenging, with the financial services industry calling for greater involvement from telecommunications and technology companies. 

The report shows that 70% of fraud cases are enabled by online sources, while 16% originate through telecommunications channels.

Romance scams declined for the first time in the data series, with cases falling 2% and losses dropping 17% to £30.5m (US$41.21m) . Impersonation fraud, where criminals pose as police or bank staff, continued to decline with both cases and losses falling around 25% compared with 2023.

Contactless fraud totalled £41.1m (US$55.53m), representing a 1% decrease and the first reduction since 2020. This occurred despite 74% of all card transactions being contactless, demonstrating the security of the payment method.

Jonathan Frost, director of global advisory at BioCatch, emphasises the asymmetric nature of the fraud battle. "The fight against fraud is relentless and typically asymmetrical," he says. "Criminals care little for ethics, regulation, or the harm they cause."

Mandy stresses the importance of consumer vigilance as fraud methods become more sophisticated. “With fraud methods becoming ever more sophisticated, it's vital that consumers stay on high alert,” she says. 

“Always take a moment to verify who you're dealing with—don't rely on the contact method they used to reach you. Be especially wary of unexpected calls, texts or emails and never feel pressured to act quickly.

"Given many of the perpetrators are beyond the reach of our own criminal justice system, we cannot respond to fraud as we would a conventional criminal threat," Ben concludes. "The scale of this threat, and the harms it causes, means that it should be regarded as a national security issue."

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