UK Experiences Rising Fraud Losses and Incidence Through Q2

2025-11-04

The Prevalence of Fraud

A recent study from UK Finance revealed that criminals stole £629.3 million (approximately $826 million) during the first half of the year, marking a 3% increase compared to the previous year.

Additionally, over 2 million fraud cases were reported through Q2 2025, representing a 17% rise from the preceding year. The average scam cost victims £300 ($394).

A significant portion of these cases originated online, with social media playing a notable role. Purchase scams—where consumers are manipulated into paying for fake products or services—are most common and often stem from social media posts.

Investment scams were the second most frequent and costliest type of fraud in the UK. Meanwhile, romance scams continued to be prevalent, with victims losing an average of £6,500 ($8,547) to criminals who preyed on their emotions.

A Global Trend

The increasing fraud in the UK aligns with a broader global trend. Consumers are frequently targeted through fraudulent emails, phone calls, texts, and messages that can be difficult to distinguish from legitimate communications.

These scams peaked during the pandemic when most shopping and messaging shifted online. However, even as consumers return to physical stores, scams remain a persistent threat, now surpassing traditional identity fraud to become the most prevalent form of fraud.

Criminals are leveraging social engineering tactics, such as high-pressure communications and realistic-looking messages, which can be particularly effective when targeting vulnerable populations like children or the elderly.

Alarmingly, many victims who send payments aren’t reimbursed, even when using legitimate channels. UK Finance reported that 98% of victims whose credentials were stolen received refunds from their banks. In contrast, only about 62% of consumers tricked into sending a payment—such as in authorized push payment (APP) fraud—are refunded.

This issue is growing globally. According to LSEG Risk Intelligence, worldwide APP fraud losses could reach $331 billion by 2027.