UK Banking Fraud Costs £417 Million in Past Year, Report Reveals

A recent report highlights the alarming impact of banking fraud in the UK, revealing that it resulted in losses of £417.4 million over the past year. The findings, compiled by the firm BestBrokers, are based on police-recorded data from July 14, 2024, to July 14, 2025, across England, Wales, Scotland, and Northern Ireland. This detailed analysis focuses on individual cases rather than corporate incidents, aiming to identify the regions most affected and the demographics of the victims.

The report indicates that there were a total of 21,392 reported cases of banking fraud during this period, positioning it as the third most costly type of fraud in the UK. In comparison, investment fraud accounted for losses of £2.2 billion across 26,141 cases, while consumer fraud resulted in £505.9 million from 102,915 cases. Despite the lower frequency of banking fraud incidents, the financial impact is significant, underscoring an urgent need for improved protective measures.

Regional Insights into Banking Fraud

The report provides a breakdown of police forces with the highest number of banking fraud victims. The Metropolitan Police in Greater London reported the highest number of cases, tallying 3,206 reports and losses of £19.2 million. Other notable police forces include Greater Manchester with 1,081 reports and £3.3 million in losses, and the West Midlands with 959 reports and £3.9 million lost.

Interestingly, the City of London Police reported the highest losses per capita, with an astonishing £12,667 per 1,000 residents, although this figure is based on only six cases due to the area’s small population of 8,700.

In contrast, regions like Scotland and Northern Ireland exhibited comparatively low numbers of banking fraud cases relative to their populations. Scotland recorded 254 reports for its population of 5.48 million, while Northern Ireland had 320 reports for 1.9 million residents. The Isle of Man reported just four cases among its 85,000 residents. These statistics may suggest either a genuine reduction in incidents or a higher rate of underreporting in these areas.

Types of Fraud and Prevention Challenges

The report also sheds light on the types of banking fraud prevalent in the UK from mid-2024 to mid-2025. A significant majority, 18,359 cases, involved cheque, plastic card, and online bank account fraud. This trend indicates persistent risks in everyday banking activities, as fraudsters continue to adapt their methods.

Other types of fraud included mandate fraud, which involves manipulating payment instructions, with 1,496 cases reported, and application fraud (excluding mortgages) totaling 1,358 incidents. Less frequently reported cases included counterfeit cashier’s cheques (122), mortgage-related fraud (36), and dishonestly retaining wrongful credits (21).

Alarmingly, £345 million in losses fell under an ‘unknown’ category for region or police force, highlighting that many victims either could not or chose not to report their location, further complicating efforts to address the issue.

This report by BestBrokers emphasizes the need for enhanced fraud prevention strategies to protect vulnerable customers from increasingly sophisticated scams. As banking fraud continues to evolve, it is crucial for financial institutions and law enforcement to stay ahead of these threats to ensure customer safety and trust in the banking system.