Fraud losses hit £1.3bn in 2025: what to know about the UK's most -common crime

The fraud epidemic shows no sign of slowing, with losses surging to new heights in 2025, according to a banking industry report.

Criminals are increasingly persuading their victims to transfer money willingly by posing as sellers, romantic partners or investment schemes.

The banking industry is now legally required to reimburse most victims who send money to scammers, following our 2016 super complaint and a decade of campaigning.

Two thirds of such authorised fraud cases now start online, leading industry body UK Finance to demand tougher rules and financial contributions from the tech and telecoms sectors. 

Here, we explain the latest fraud trends and the steps you can take to stay safe.

Card fraud crisis

The amount stolen through unauthorised fraud – where money is taken from your account without your consent –  fell by 5% last year, but the number of cases rose by 11%. 

One possible explanation for this is that fraudsters may be opting for lower-value transactions in order to fly under the radar of banks' fraud defences.

The main driving force in rising cases was 'remote purchase' card fraud, in which criminals obtain and use your card details (for example, via a data breach, phishing email or fake shopping site) without taking your physical card. Losses reached £423.5m (up 3%), while cases soared 13% to 3.2m.

Victims are almost always reimbursed for these unauthorised frauds.

How to protect yourself: If you spot a transaction you don't recognise, contact your bank immediately. Regularly checking your account and card statements can help you identify suspicious activity before more money is taken. 

• Find out more: my card has been lost or stolen and used to purchase goods 

Bank transfer scams soar 

Scams which manipulate victims to send money via bank transfer can be particularly devastating, as large sums are often lost, and victims frequently experience guilt and self-blame.

Last year saw a sharp 19% increase in this type of fraud, which reached £576.4. There were 248,070 cases, with the average loss per case amounting to more than £2,300.

Victims of such fraud are now legally entitled to be refunded by their bank or provider (up to a maximum of £85,000) under most circumstances. Losses above that amount, and those made to overseas accounts, are exempt.

UK Finance says 89% of eligible losses were reimbursed between October 2024 (when the law came into effect) and December 2025.

How to protect yourself:  If you're asked to transfer money unexpectedly, stop and verify the request using a trusted phone number or website. Be especially cautious if you're being pressured to act quickly or keep the payment secret. 

• Find out more: what to do if you fall victim to a bank transfer scam

Investment and romance scams

Losses can also be especially large and life-changing when it comes to investment and romance fraud. This is because victims are groomed to believe that by paying out their life savings, they will secure a better future, financially and/or with a romantic partner. 

Therefore, it's particularly worrying to see case numbers surging for both; up 23% for investment fraud and 22% for romance fraud.

How to protect yourself: Investment scams often begin with ads on social media or unexpected messages promising high returns with little risk. Before investing, check whether a firm is authorised by searching the Financial Conduct Authority's register and warning list. If someone you've met online starts asking for money, be wary and speak to a trusted friend or family member before making any payments.

• Find out more: Which? finds deepfake investment scams on YouTube

Purchase fraud dominates

Purchase fraud, in which victims pay for non-existent goods or services, accounted for 71% of all cases, with losses up 20%. Tickets for flights, gigs and sporting events are frequent targets, as are clothes, electronics and vehicles sold on online marketplaces.

How to protect yourself: If you're buying from an online marketplace, be wary of sellers who ask you to move conversations off-platform or pay by bank transfer. Using a credit card or a secure marketplace payment system can provide stronger protection if something goes wrong.

• Find out more: how to get your money back after a scam

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How scammers are using AI

The report makes clear that AI tools are changing the face of fraud, making it more polished and harder to detect: 'Organised criminal networks run compounds staffed by trafficking victims and use Artificial Intelligence (AI) to hone, personalise, and automate cross-border attacks. Increasingly, these attacks target human behaviour to bypass bank controls.' 

It adds that criminals use AI to 'scale and refine attacks, crafting convincing impersonation scams and deploying deepfakes during account openings.' And it warns that agentic AI (which can perform complex sequences of automated tasks on a human's behalf) 'is likely the next force multiplier for global criminals'.

How to protect yourself: AI is making scams harder to spot by eliminating the spelling mistakes and poor grammar that once gave fraudsters away. If someone contacts you out of the blue, don't rely on appearances alone. Verify any claims directly with the organisation or person involved using trusted contact details, and be sceptical of requests that pressure you to act quickly.

• Find out more: how to spot and avoid AI scams

Calls for tougher action on fraud 

In its report, UK Finance demands tough action against the tech and telecoms sectors and points out that most authorised fraud originates on their platforms and services.

Among its calls to regulator Ofcom are stronger measures against 'high-risk' social media platforms to prevent investment fraud, and seller verification and mandatory secure payment methods for users of online marketplaces.

It echoes the concerns outlined in a joint letter with Which? to the government last year.