AI-Enabled Scams Drive Surge in UK Financial Fraud Losses
UK fraud losses reached £1.3 billion in 2025 as criminals increasingly used AI to manipulate victims in romance scams and other schemes, with 4.1 million cases reported representing a 31% rise since 2023. Investment scam losses soared 40% in a year to record levels, and banks called the problem a national security threat requiring better platform monitoring.
What happened
Cases of fraud in the UK surged to 4.1 million in 2025, up 11% from 2024 and 31% from 2023, with criminals using AI to manipulate victims.
Losses to investment scams increased by 40% in a year to a record high, while purchase scams using stolen card details also reached new record levels.
Fraudsters used fake profiles on social media and dating sites to meet, groom and steal from victims, with some examples including marriage to continue stealing money.
Reported impact
Almost £1.3 billion was stolen by scammers in 2025, representing an increase of more than one million cases of fraud in two years.
Banks said fraud posed a national security threat given the impact on victims and the huge sums stolen by organised criminals.
Index analysis
UK Finance compiled the report from banking data described as the most comprehensive assessment of fraud losses in the UK.
Governance controls
UK Finance said the enormous scale of the problem could only be tackled if tech companies stepped up monitoring and security of their platforms.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.