Top 5 Fraud and FinCrime trends reshaping UK businesses in 2025

Fraud and financial crime remain a significant challenge for UK businesses in 2025. From banks and fintech’s to retailers and telecom providers, organisations are working hard to stay ahead of increasingly sophisticated threats. According to the latest insights from the Experian UK Fraud and FinCrime Report 2025, just one in ten expect to reduce their fraud and compliance budgets this year, while the majority are preparing to invest more heavily in prevention and detection.

The scale of the issue is undeniable. In 2024, a record 421,000 cases were logged on the National Fraud Database—a 13% year-on-year increase and the largest spike on record. At the same time, 59% of businesses reported that fraud losses continue to rise annually. Generative AI appears to be accelerating this trend, enabling more sophisticated forms of identity fraud, account takeovers, and synthetic identity creation. In just the first quarter of 2025, 35% of businesses reported being targeted by AI-related fraud, up from 23% during the same period the previous year.

At the same time, more familiar threats such as APP scams, SIM swap fraud, and first-party fraud remain widespread. As the threat landscape becomes more complex, businesses are also fighting back and adapting their strategies, investing in new technologies, strengthening internal processes, and aligning fraud and compliance functions more closely.

Based on findings from the Experian UK Fraud and FinCrime Report 2025 and insights from Credit Week last week, here are five key priorities for businesses this year: 

1. Enhancing fraud detection with AI and machine learning 

AI is playing an increasingly important role in both the challenges and solutions facing fraud teams. While GenAI is being used to create more convincing fraud attempts, businesses are also leveraging it to strengthen their defences. Over half (52%) of UK businesses are enhancing their AI analytics capabilities, and 51% are developing new models to support better customer decision-making and reduce false positives. 

This reflects a broader shift away from static, rule-based systems toward more adaptive, data-driven approaches. These systems can analyse large volumes of transactions in real time, identify unusual patterns, and adjust to emerging threats. For businesses, this means being able to respond more quickly and accurately to fraud risks. 

2. Strengthening authentication to address SIM swap fraud 

SIM swap fraud has become a growing concern, with reported cases increasing by over 1,000% in 2024. This type of fraud allows criminals to take control of a victim’s mobile number and intercept one-time passcodes, giving them access to sensitive accounts and services. 

To address this, businesses are reviewing their authentication strategies. Many are moving beyond SMS-based two-factor authentication and adopting more robust, multi-layered approaches. This includes the use of physical and behavioural biometrics, device intelligence, and knowledge-based authentication. These methods offer greater resilience against evolving threats and help protect both customers and systems.  

3. Addressing the rise in first-party and synthetic identity fraud 

First-party fraud has re-emerged as a key concern in 2025, particularly in light of new reimbursement rules for APP scams. At the same time, synthetic identity fraud continues to pose a significant challenge, with estimated losses exceeding £300 million annually for UK financial institutions. 

In response, 60% of businesses are prioritising investment in synthetic identity detection, and 55% plan to increase their budgets in this area. Advanced identity verification tools, including those that combine behavioural data with traditional checks, are becoming more widely adopted. These tools are helping businesses to identify inconsistencies and mitigate the risk of fraud during the onboarding process. 

4. Integrating fraud and AML operations for greater efficiency 

Many organisations are recognising the benefits of a more integrated approach to fraud and financial crime. In 2025, 60% of businesses are bringing together their fraud and AML teams into unified FRAML (Fraud and Anti-Money Laundering) operations. This integration supports better data sharing, more coordinated responses, and improved detection, and it does this by creating critical context and eliminating intelligence blind spots. 

Additionally, 65% of businesses are investing in detecting financial crime risks at the onboarding stage. By identifying risks earlier in the customer lifecycle, organisations can reduce downstream costs and improve the overall effectiveness of their financial crime prevention strategies. 

5. Responding to changing consumer expectations 

Consumer attitudes towards online safety are shifting. For the first time, Gen Z and Millennials are more concerned about online fraud than older generations. Their concerns include privacy, misinformation, and the misuse of personal data, particularly in the context of AI-generated content. 

Businesses are responding by placing greater emphasis on transparency, security, and user experience. While 84% of organisations are committed to reducing customer friction, they also recognise the importance of maintaining visible and effective fraud controls. Balancing these priorities will be essential to building trust and meeting the expectations of today’s digital consumers. 

To stay ahead of the curve, UK businesses must act now investing in smarter technologies, unifying fraud and compliance efforts, and aligning with evolving consumer expectations. Those who lead on fraud resilience in 2025 will be the ones who earn trust, reduce risk, and drive long-term growth. Achieving this requires a layered approach, combining multiple technologies and capabilities to detect and respond to emerging threats with agility and precision.