Banking chief calls out tech giants as UK fraud losses hit £629m in six months
The head of Britain's banking lobby has issued a stark warning about the UK's fraud epidemic, revealing that criminals stole £629.3 million in the first half of 2025 while technology companies continue to profit from fraudulent activity on their platforms. Speaking at the Economic Crime Congress 2025, David Postings, chief executive of UK Finance, called for government intervention to hold tech firms accountable as fraud cases surged 17% year-on-year to over two million incidents.
The stark figures come despite UK banks spending an estimated £38 billion annually on compliance and preventing an additional £870 million in unauthorized fraud during the same period—a 20% increase from the previous year. Postings likened the situation to "asking your goalkeeper to save every shot because your outfield players are asleep," highlighting what he described as the disproportionate burden placed on financial institutions.
Background and Context
Fraud now accounts for over 40% of all reported crime in the UK, making it the country's most common criminal activity. The banking sector has implemented numerous prevention measures, including the Banking Protocol which has prevented over £400 million in thefts since its inception by connecting bank branch staff directly with police to protect vulnerable customers.
Despite these efforts, the industry maintains that prevention must occur earlier in the fraud chain. According to data presented by UK Finance, 66% of authorized push payment (APP) fraud cases originate online, while 17% begin through telecommunications networks. These channels, largely controlled by technology companies, remain inadequately regulated for fraud prevention, banking representatives argue.
Key Figures and Entities
UK Finance, representing Britain's banking sector, has been at the forefront of anti-fraud efforts through its Intelligence Unit, which reported a 20% increase in data sharing among members, with over 700,000 records exchanged monthly. The industry-funded Dedicated Card and Payment Crime Unit (DCPCU) has prevented over £75 million in thefts this year, charging 86 individuals and disrupting 120 organized crime groups—a record number of disruptions.
On sanctions compliance, UK Finance reported that its members have frozen £37 billion worth of assets, a significant increase from £24.4 billion the previous year. The consolidated sanctions list currently includes 3,750 individuals, 968 entities, and 15 ships, with the Office of Financial Sanctions Implementation (OFSI) focusing on enhancing enforcement capabilities.
Legal and Financial Mechanisms
The banking industry has welcomed recent Treasury commitments to reform Money Laundering Regulations, which represent the largest component of the sector's £38 billion annual compliance spend. Changes include increased use of Customer Due Diligence obligations and clearer guidance for digital identification and verification systems. The recent increase in the Suspicious Activity Report threshold aims to help firms focus resources on higher-value criminal activities.
However, Postings criticized the Public Authorities Fraud, Error, and Recovery Act for adding complexity to banks' compliance requirements. "Using banks to police fraud and error in the benefits system is a matter for public debate, but what is certain is that it distracts from the industry's work to tackle the big issue of serious organised crime," he stated, calling for a risk-based approach consistent with the Chancellor's Financial Services Growth and Competitiveness Strategy.
International Implications and Policy Response
Postings raised concerns about the national security implications of tech companies profiting from fraudulent activity, suggesting that proceeds may flow to "rogue states who use the cash to further damage our society." While declining to verify specific claims from a Reuters report about a major technology company allegedly turning a blind eye to fraudulent advertising, he emphasized that if true, "surely the government have to act."
The banking industry's Take Five to Stop Fraud campaign has achieved significant public recognition, with 56% awareness and 72% of people reporting they took protective action against fraud in the last six months. However, Postings argued that voluntary measures are insufficient, calling for the upcoming Fraud Strategy to ensure "all sectors are accountable in preventing fraud" through "real sustained pressure" on technology companies.
"Mandatory reimbursement has achieved circa 90% repayment rates but, so what?" Postings questioned. "It does nothing to deal with the root cause. All it does is redistribute funds between customers. The proceeds still go to the bad guys!" He called on the Home Secretary to prioritize prevention and cross-sector collaboration in the new strategy, stressing that tech giants must be compelled to "put their enormous financial might to bear" on the problem.
Sources
This report draws on a speech delivered by David Postings, CEO of UK Finance, at the Economic Crime Congress 2025, supplemented with information from the Office of Financial Sanctions Implementation, the Take Five to Stop Fraud campaign, and the Banking Protocol initiative. Banking industry statistics reflect internal reporting by UK Finance member institutions for the first half of 2025.
