Criminals stole £1.28 billion through fraud in the United Kingdom during 2025, representing a four percent increase from the previous year, according to figures released by UK Finance. The data reveals that authorised push payment fraud experienced a notable resurgence after declining in 2024, underscoring the persistent vulnerability of the payments ecosystem to social engineering attacks.
APP fraud occurs when victims are manipulated into authorising payments to accounts controlled by criminals, often through impersonation or investment scams. The renewed upward trend suggests fraudsters have adapted their tactics following temporary setbacks and regulatory interventions. This development arrives as the financial services sector contends with mandatory reimbursement requirements introduced under recent consumer protection frameworks, which place significant liability on payment service providers.
For FX and CFD brokers, the figures highlight growing scrutiny around client onboarding and transaction monitoring systems. Compliance teams must ensure robust controls are in place to detect unusual payment patterns and verify the legitimacy of client instructions, particularly given the sector’s exposure to investment fraud schemes. Payment service providers and fintech platforms face mounting pressure to invest in advanced fraud detection technologies and real-time transaction screening capabilities.
The rising fraud figures also carry reputational and operational risks for firms handling client funds, as regulatory expectations around fraud prevention continue to tighten across UK financial services. Companies must balance customer experience with enhanced security measures while managing the financial exposure created by mandatory reimbursement obligations.
FXnCO Insight
Brokers and payment firms should treat fraud prevention as a competitive differentiator rather than purely a compliance cost, as client protection capabilities increasingly influence both regulatory standing and market reputation.
Source: Finextra