Fraudsters have leveraged artificial intelligence (AI) to devastating effect in 2025, fuelling a near-20% surge in losses to £576.4 million – the highest figure since 2021's record £583.2 million.
The exponential growth in AI-fuelled scams has been facilitated by its widespread adoption, lowering the barrier for entry into the world of organised crime and enabling perpetrators to craft increasingly sophisticated communications that convincingly masquerade as genuine requests from acquaintances or public figures.
UK Finance reports that two-thirds of these cases originated online, with banks and financial providers reimbursing 61% of losses amounting to £354.3 million – a small consolation for the substantial number of victims unable to recover their stolen funds.
Ruth Ray, managing director for economic crime at UK Finance, cautioned that AI's influence has made more people vulnerable to falling prey to malicious links and fraudulent content, highlighting the need for enhanced security measures in both digital platforms and financial institutions.
Beyond authorised push payment (APP) fraud, which rose by 19% to £576.4 million, other forms of financial crime also saw significant increases. Investment fraud skyrocketed by 40% to £221.5 million, while romance fraud rose by 23% to £39.2 million as scammers exploited emotional connections over extended periods.
The Payment Systems Regulator (PSR) introduced mandatory APP fraud reimbursement rules in October 2024, requiring banks to reimburse victims unless gross negligence can be proven. The regulations apply to transfers between UK bank accounts, with a reimbursement limit of £85,000 – although banks can choose to exceed this.
Ms Ray underscored the scale and scope of financial crime, its far-reaching impact on individuals, businesses, and the broader UK economy often funding global organised crime networks. Despite significant investments in customer protection by the financial sector, Ms Ray stressed that stronger, enforceable responsibilities must be placed on online tech platforms and telecommunications to tackle the root cause.