Fraud cases in the UK surged to 4.1 million last year, with criminals increasingly using artificial intelligence to manipulate victims, according to the latest annual report by UK Finance. Almost £1.3bn was stolen by scammers in 2025, the banking trade body said, marking a 31% increase in reported losses over two years.
Scale of the Problem
The report, compiled from banking data, recorded 4.1 million cases of fraud where money was stolen in 2025 — that is nearly eight cases every minute on average. This represents an 11% increase from the previous year and a 31% rise compared to 2023. Investment scams saw a 40% jump to a new record high, while purchase scams — where criminals use stolen card details to buy goods online — also reached record levels.
| Fraud Type | 2025 Figures | Year-on-Year Change |
|---|---|---|
| Total cases | 4.1 million | +11% |
| Total losses | £1.3 billion | +31% (over 2 years) |
| Investment scams | Record high | +40% |
| Purchase scams | Record high | Not specified |
| Authorised push payment fraud | Losses up 19% | 12% not reimbursed |
AI and Romance Scams
Criminals are using artificial intelligence to carry out more sophisticated fraud at greater volume. UK Finance reported that fraudsters have used AI to mimic the voices of celebrities and even victims' family and friends, enabling them to trick people more effectively. Romance scams remain a major tactic: criminals create fake profiles on social media and dating sites to groom victims. One example cited in the report involved a fraudster marrying a victim to continue stealing money.
Kirsty Guest, a florist from North Yorkshire, was scammed out of £80,000 after meeting a man on a dating app who used a fake identity. The relationship developed over months, but the scammer tricked her into sending thousands of pounds after claiming he had been in an accident on a work trip.
Banking Industry's Call for Tech Responsibility
Banks said fraud poses "a national security threat" given the impact on victims and the sums stolen by organised criminals. Paul Davis, head of economic crime at Barclays, said: "The impact goes beyond financial loss; it can cause huge emotional harm, leaving victims burdened by guilt and shame, which is why we must tackle the problem at its source to protect consumers."
Ruth Ray, managing director of economic crime at UK Finance, added: "One click and you can lose your life savings." She called for "stronger, enforceable responsibilities" on tech platforms such as social media channels and online marketplaces. This could include stronger rules over removing fraudulent advertising, verification of sellers, and secure payment systems.
Reimbursement and Consumer Protection
In authorised push payment (APP) fraud — where victims are tricked into transferring money — most are now legally entitled to a refund from their bank. However, losses from APP fraud rose 19% in 2025, and 12% of stolen money was not reimbursed. UK Finance noted that experts believe the majority of scams go unreported, meaning the official statistics likely understate the true scale.
For enterprise technology leaders, the surge underscores that AI-enabled fraud is not limited to retail consumers. As criminals refine techniques like voice synthesis and deepfake profiles, organisations face increased risk of business email compromise, supplier fraud, and social engineering attacks. The banking industry's call for tech platform accountability may signal tighter regulation ahead for digital marketplaces and social media used in supply chains.
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