UK fraud losses hold steady at £1.17bn as experts warn of evolving threats

By Puja Sharma

Fraud continues to pose a grave threat to the UK’s financial stability and consumer safety, with losses from unauthorised and authorised fraud reaching a staggering £1.17 billion in 2024, according to UK Finance’s annual fraud report. While the figure remains broadly unchanged from 2023, the unrelenting scale of the threat has drawn calls for urgent cross-sector action.

Banks were able to prevent an estimated £1.45 billion of unauthorised fraud using advanced security measures, highlighting the effectiveness of proactive fraud prevention tools. Yet, a deeper dive into the data reveals the shifting nature of fraud tactics and growing vulnerabilities outside traditional banking defences.

Where Scams Begin

A significant 70% of authorised push payment (APP) fraud cases originated online, with an additional 16% stemming from telecommunications networks, according to the report. These figures underscore how the digital environment, particularly social media and messaging platforms, continues to be fertile ground for fraudsters.

Jonathan Frost, Director of Global Advisory for EMEA at BioCatch – a behavioural biometrics firm and sponsor of the report – believes the UK is reaching a critical inflection point.

“The UK Finance annual fraud report demonstrates that the industry is holding its own in the fight against fraud. Fraudsters are having to work harder to stand still,” Frost remarked. “But the gains made by criminals show the threat is persistent. Tackling it demands that we collectively innovate and adapt faster than they can.”

Frost particularly pointed to a rising trend in remote fraud, potentially accelerated by a recent iOS update that allows remote access and control of iPhones – a first in the product’s history. While APP fraud has decreased thanks to stringent controls, Frost warns that remote purchase fraud is on the rise, and attackers will continue to pivot their tactics as old avenues are shut down.

Investment and Romance Scams: Sophisticated and Personal

Perhaps most concerning is the surge in investment scam losses, even as the number of reported cases declines. These scams often involve prolonged and highly convincing manipulation by fraudsters who promise lucrative returns in cryptocurrencies, real estate, or gold, only to vanish with victims’ life savings.

Frost also warned of increased vulnerability linked to government policies, “With the UK government encouraging consumers to shift from cash ISAs to stocks and shares, we may see more citizens fall prey to high-risk investment scams—many of which are not easily reimbursed.”

The growing use of social engineering techniques, including romance scams, makes this category of fraud particularly hard to detect and prevent. Victims often proceed with transactions despite clear warnings from their banks, a trend Frost said banks are trying to counter by educating customers to recognise red flags earlier in the process.

Fraud Accounts for 40% of All Crime: Is the Fight Fair?

Frost didn’t mince words when addressing what he sees as a structural imbalance. “For banks, the fight against fraud isn’t a fair one,” he said. “They face sophisticated, drawn-out scams that are difficult to stop even with robust detection systems. Until we have a system that supports prevention at every level—regulation, telecoms, crypto, tech—the burden will remain unequally on banks.”

He cited the stark figure that fraud now constitutes 40% of all crime in the UK, while policing efforts and regulatory coordination lag behind. The current framework, Frost argued, puts the onus on financial institutions to catch fraud, even when other sectors enable its spread.

Call for a Unified National Fraud Strategy

To shift the tide, Frost reiterated the urgent need for a comprehensive and coordinated national fraud strategy, one that unites law enforcement, banks, technology providers, and telecom operators under a common goal: pre-empting scams and making digital spaces safer.

“The strategy must prioritise prevention, embrace cutting-edge technology, and enforce accountability across all relevant sectors. Until then, the system will continue to fail too many.”

This year’s figures show that while the UK’s financial industry is deploying more sophisticated tools than ever to combat fraud, the threat is mutating faster than traditional defences can adapt. As fraud becomes more digitally native, siloed approaches—whether by banks, telcos, or regulators—will no longer suffice.

The call to action is clear: a collective, intelligence-driven response is the only way to reduce losses, protect vulnerable consumers, and restore fairness to the fight. Otherwise, as Frost warns, the UK risks letting fraudsters remain one step ahead.