Investment fraud in the UK has soared, with losses exceeding £220 million last year, according to new data from UK Finance. Investment fraud accounted for the highest proportion of losses at £221.5 million, a 40% increase year-on-year, while the number of cases rose by 26% to 14,893.
Fraud on an Industrial Scale
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.”
She added: “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.”
Ray emphasised that most authorised push payment (APP) fraud still originates via online tech platforms or telecoms, and called for “stronger, enforceable responsibilities” to be placed on these sectors to reduce harm and stop criminals and tech companies profiting from these crimes.
Experts Call for Real-Time Detection
Jonathan Frost, Global Advisory Director at BioCatch, said: “Banks are winning the fight against traditional fraud, but criminals have adapted, shifting from hacking systems to manipulating people, and authorised losses are surging as a result.”
He stressed that financial institutions must detect social engineering in real-time, intervene before funds leave an account, and disrupt the mule accounts that fraudsters rely on. “Behavioural intelligence can expose manipulation and flag mule accounts in real time, but no single institution can win this alone. A connected industry can deny criminals the proceeds of crime at scale. A fragmented one cannot.”
Technology-Led Approach Needed
Kamlesh Harry, Principal Strategic Advisor for Nasdaq Verafin, said: “These figures are a measure not just of criminal ambition but of the technological advantage fraudsters currently enjoy.”
He noted that criminals are exploiting advances like AI to industrialise operations, tailor cross-border scams, and target British victims through global platforms and social networks, driving a surge in authorised fraud. “We need an equally technology-led and joined up approach to tackle the problem: smarter use of digital tools, greater commitment to data sharing, and shared accountability across financial institutions, technology platforms and law enforcement.”
Harry concluded: “This will drive an urgently needed shift from reactive detection to real-time prevention, identifying and acting on fraud signals early, before funds are lost, and lives are devastated.”
