UK Fraud Landscape 2025: Insights for Payment Service Providers

The latest UK Finance Annual Fraud Report offers a detailed view of the evolving fraud environment that directly affect payment service providers (PSPs). In 2024, the UK saw a record-breaking 3.31 million confirmed fraud cases, a 12% annual increase. However, the total amount stolen remained steady at £1.17 billion. This trend suggests that fraudsters are targeting a greater number of victims, but often for smaller amounts, most likely due to improved PSPs controls.

Among the most notable developments is the sharp rise in remote purchase (card-not-present) fraud, particularly in e-commerce. Cases in this category surged by 22% and losses by 11%. In contrast, Authorised Push Payment (APP) fraud saw a decline, with losses dropping by 2% and cases by 20%. Yet, within APP fraud, investment scams went against the flow, with losses increasing by 34% despite fewer cases, indicating more higher-value sophisticated attacks. Card fraud abroad also rose, with a 15% increase in losses as criminals exploit weaker overseas controls, while cheque fraud, although up by 44%, remains a minor concern overall.

In 2024, £1.45 billion in unauthorised fraud was stopped, a 16% increase from the previous year. Law enforcement agencies have the Dedicated Card and Payment Crime Unit (DCPCU), which disrupted 90 organised crime groups and secured 75 convictions. Public education campaigns, such as “Take Five,” have also contributed to reducing certain types of scams.

As regularly discussed, regulatory changes are reshaping the landscape for PSPs. Since October 2024, new Payment Systems Regulator (PSR) rules require higher reimbursement rates for APP fraud victims. While this strengthens consumer protection, it also shifts incentives for PSPs, who must now balance prevention, detection, and reimbursement considerations.

For payment service providers, the path forward is clear. Investing in multi-layered defences that combine technology like AI and behavioural analytics with human expertise is crucial. Sharing intelligence quickly and widely with peers via forums such as Cifas, UK Finance and Pay.UK’s RCMS, as well as with law enforcement and regulators, will help detect and disrupt fraud before it causes harm. Educating both customers and staff about emerging threats - such as AI-driven scams and social engineering, is more important than ever.

How Cosegic can help

The UK’s fraud landscape is dynamic and challenging. Whether you need support with fraud prevention strategies, staff training, or navigating regulatory requirements, our team is here to help. Contact us today to discuss how we can support your payment service needs.

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