UK Banking Fraud Costs £417 Million in 12 Months

Banking fraud in the UK has resulted in substantial losses of £417.4 million over the past year, according to a comprehensive report by the firm BestBrokers. The report, which analyzed police-recorded data from July 14, 2024 to July 14, 2025, highlights the widespread nature of these frauds across England, Wales, Scotland, and Northern Ireland. The findings reveal crucial insights into the demographics and regional distribution of victims.

During the assessed period, there were 21,392 reported cases of banking fraud, making it the third most costly type of fraud in the UK. Investment fraud topped the list with losses of £2.2 billion, followed by consumer fraud at £505.9 million. Despite the frequency of consumer fraud being nearly five times greater, the financial impact of banking fraud remains significant.

Regional Analysis of Banking Fraud

The report shows that certain police forces experienced a higher incidence of banking fraud. The Metropolitan Police reported the highest number of cases, with 3,206 reports and total losses of £19.2 million. Other notable figures include:

– Greater Manchester: 1,081 reports, £3.3 million in losses
– West Midlands: 959 reports, £3.9 million in losses
– West Yorkshire: 859 reports, £2.3 million in losses
– Thames Valley: 747 reports, £2.5 million in losses

The City of London Police reported the highest losses per capita at £12,667 per 1,000 residents, though this figure is based on only six cases, indicating a statistical anomaly due to the small population of the area.

In contrast, regions such as Scotland and Northern Ireland reported relatively low numbers of banking fraud cases, with Police Scotland recording 254 reports for a population of 5.48 million, and the Police Service of Northern Ireland (PSNI) documenting 320 reports for 1.9 million residents. The Isle of Man reported only four cases among its population of 85,000. These numbers may suggest either a genuine lower incidence of fraud or a higher likelihood of underreporting in these areas.

Types of Banking Fraud and Victim Demographics

The most common types of banking fraud reported over the year included cheque, plastic card, and online banking account fraud, totaling 18,359 cases. This trend underscores ongoing vulnerabilities in everyday banking practices. Other significant types included:

– Mandate fraud: 1,496 cases
– Application fraud (excluding mortgages): 1,358 cases
– Counterfeit cashier’s cheques: 122 cases
– Mortgage-related fraud: 36 cases

The report from BestBrokers also indicates that a staggering £345 million in losses was categorized as ‘unknown’ regarding location or police force, suggesting that many victims either did not report their fraud or could not specify their location. This highlights the need for improved reporting mechanisms and enhanced public awareness about banking scams.

As banking fraud continues to evolve with changing tactics employed by criminals, understanding these trends is crucial for both consumers and financial institutions. The report emphasizes the need for increased prevention efforts to protect vulnerable customers from falling victim to these scams.