Fraud losses from authorised push payment (APP) scams surged 19% to £576.4 million in 2025, marking the highest annual theft since the 2021 pandemic peak. The rise reflects how criminals are increasingly using artificial intelligence to mimic trusted contacts and scale sophisticated social engineering attacks against consumers and businesses.
The scale of AI-driven fraud
UK Finance recorded 248,070 APP fraud cases last year, a 7% increase from the previous period. Personal losses accounted for £500.8 million, while business losses reached £75.6 million.
Ruth Ray, managing director of economic crime at UK Finance, said the numbers reflect a predictable shift in criminal tactics. "We certainly are shocked, but we are not surprised," Ray said. "We are well aware that, particularly with the advent of AI, it lowers the barrier to entry for criminals to make their scams more sophisticated and make more of us vulnerable to and susceptible to clicking on links and content."
Investment fraud drove the highest financial losses, jumping 40% to £221.5 million. Purchase scams made up 71% of all cases, with losses rising 20% to £118.1 million. Romance fraud losses also increased by 23% to £39.2 million.
Banks reimburse more, but prevention lags
Financial institutions reimbursed £354.3 million to APP fraud victims last year, covering 61% of total losses. This follows mandatory reimbursement rules that took effect in October 2024, requiring banks to repay victims unless they were grossly negligent.
The Payment Systems Regulator reported that 88% of in-scope APP fraud was reimbursed during the first year of these rules. However, the overall volume of payment fraud continues to climb. Criminals stole £1.28 billion through all payment fraud in 2025, a 4% increase.
Jonathan Frost, global advisory director at BioCatch, said banks are succeeding against traditional attacks but struggling with human manipulation. "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," Frost said.
The technological advantage of scammers
Fraudsters are exploiting advances in technology to industrialize their operations and tailor cross-border scams. Kamlesh Harry, principal strategic adviser for Nasdaq Verafin, said these figures measure the technological advantage fraudsters currently enjoy.
Jim Winters, head of financial crime at Nationwide Building Society, said investment scams frequently begin on social media using fake celebrity endorsements. Paul Davis, head of economic crime at Barclays UK, said 78% of UK adults believe AI advances have made scams more convincing, while only a third feel confident identifying AI-generated fraud.
Banks are deploying defensive measures, but executives argue that tech and telecom platforms must bear more responsibility. Ray said the financial sector cannot be the only line of defence against attacks that typically originate on external platforms.
Why this matters for finance professionals
Finance leaders must adapt their risk management strategies to address social engineering, not just system vulnerabilities. Integrating AI for Finance tools can help institutions detect anomalous transaction patterns in real time before funds leave an account.
Furthermore, executives overseeing financial operations need a clear grasp of AI risk analysis to protect institutional assets and comply with evolving reimbursement mandates. Pursuing an AI Learning Path for CFOs provides frameworks for evaluating these emerging technological threats.
The industry must shift focus from solely preventing unauthorised access to actively identifying and disrupting the manipulative narratives that drive authorised transfers.
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