The report also shows that most authorised push payment (APP) fraud cases still start online (66 per cent) or through telecommunication networks (17 per cent) and, building on the government’s Fraud Strategy, UK Finance is therefore calling for stronger, enforceable responsibilities to be placed on companies in these sectors, including:

Tackling fraudulent advertising by having Ofcom place stronger and proactive fraud prevention obligations on high-risk platforms. This would help address investment fraud, which often starts through fraudulent advertising on social media.

Requiring online marketplaces to verify their sellers and use secure payment mechanisms rather than allowing separate bank transfers to take place off the platform. This would address purchase fraud, which often starts on marketplace sites.

Firms in the tech and telecommunications sectors should be required to contribute financially, as well as sharing expertise, intelligence and capabilities to support proactive fraud prevention. 

Ruth Ray, managing director of economic crime at UK Finance, said: “Fraud operates on an industrial scale, harming people, businesses and the UK economy, typically funding serious and organised crime in the UK and globally.

“The financial sector invests huge amounts in protecting customers, but we cannot be the only line of defence. Almost £1.3 billion was stolen again last year and it is clear we are not tackling the underlying problem effectively enough. 

“Given most APP fraud still starts via online tech platforms or via telecoms, we urgently need stronger, enforceable responsibilities to be placed on these sectors. This is the way to reduce the harm and stop criminals and tech companies profiting from these devastating crimes.”

Unauthorised fraud losses were down five per cent to £703.4 million and there were 3.81m fraud cases reported (up 11 per cent).

Online platforms continue to be exploited by criminals to manipulate victims into authorising payments themselves.  

APP fraud losses rose sharply to £576.4m (up 19 per cent) and there were 248,070 cases recorded (up seven per cent). This reflects the growing scale and sophistication of scams that manipulate people into transferring money for goods, services or opportunities that never materialise.

Jonathan Frost, global advisory director at BioCatch, said: “Banks are winning the fight against traditional fraud, but criminals have adapted, shifting from hacking systems to manipulating people, and authorised losses are surging as a result.

“Financial institutions must detect social engineering in real-time, intervening before funds leave an account, and disrupt the mule accounts that fraudsters rely on. Behavioural intelligence can expose manipulation and flag mule accounts in real time, but no single institution can win this alone. A connected industry can deny criminals the proceeds of crime at scale. A fragmented one cannot.”