Fraudsters Stole £1.28 Billion From UK Victims in 2025 with APP Fraud on the Rise
The latest annual UK Finance Report has been released for 2025 and the figures show the scale of fraud in the UK at the moment. Fraudsters stole a total of £1.28 billion across 4.68 million confirmed cases from UK Finance members, an increase of 4%.
Behind every statistic in the UK Finance annual fraud report is a real person, someone who trusted the wrong message, the wrong investment, or the wrong face on a screen. Someone who is now dealing with the financial and emotional consequences of being deceived by a professional criminal.
This article breaks down the key figures, and critically, what rights victims have to get their money back.
Key Takeaways from the report:
APP Fraud losses rose to £576.4 million
Investment scams rose 40% to £221.5 million
Purchase scams rose 20% to £118.1 million
Romance scams rose 23% to £39.2 million
Unauthorised fraud decreased by 5% to £703.4 million
What is APP Fraud and Why is it Rising?
APP fraud happens when a scammer manipulates a victim into willingly authorising a real-time transfer (or "push") of money to an account controlled by the fraudster.
Unlike unauthorised fraud, where a criminal takes money without your knowledge, in APP fraud the victim authorises the payment themselves, often after being deceived by impersonation scams, investment fraud, purchase scams or romance scams.
UK Finance reported that over 66% of APP fraud starts online. This shows the nature in which fraud is heading and scammers are becoming more sophisticated than ever. With the advancements in AI technology scammers can easily trick victims into believing they are sending money to a payee they believe is legitimate. AI scams are creating challenges for victims, regulators, banks and social media companies to spot and prevent fraud at a global scale.
As we explored in our Martin Lewis scam warning article, scammers are using deepfake videos and images to present respected celebrities to promote their fake schemes.
APP Fraud is one of the most prevalent and financially damaging forms of financial crime in the UK. As we explored in the psychological effects of scams article, APP fraud doesn’t just impact you financially, it affects every part of your life and many victims feel embarrassed to come forward. It is important to remember you are not alone and there is support available.
Investment Scams Rise 40% - The Sharpest Increase of Any Fraud Type
Investment scams rose the highest amount with a staggering 40% rise to £221.5 million lost. These types of scams are more prevalent than ever before and many of these investment schemes can appear legitimate for the outside and investors are manipulated into believing that the investment is real, only to find out later down the line that the investment was highly exaggerated or never happened at all.
Purchase Scams Rise 20% to £118.1 Million
Another common APP fraud is purchase scams and these also took a rise in losses. Purchase scams are when a fraudster sells you goods or services that you do not receive. Purchase scams can take many forms and scammers will use multiple different tactics to trick you into purchasing something, only to realise it was not as it seemed or it was never delivered.
Romance Scams Rise 23% to £39.2 Million
Romance scams rose 23% in 2025. This is one of the most emotionally damaging fraud types, where criminals build genuine emotional connections with victims over months or years before requesting money. The psychological impact of romance fraud extends far beyond financial loss, leaving many victims with lasting damage to their ability to trust others.
What Rights Do Fraud Victims Have?
Whilst it is important to look at the staggering amount of fraud losses and APP scams, it is also important to look at what rights victims have after they have fallen victim to a scam.
Many victims are not aware that they now have a legal right for reimbursement under new APP fraud reimbursement rules introduced in October 2024 through the Mandatory Reimbursement Model.
Victims of APP fraud can claim back their lost funds from their bank or payment provider. Since October 2024, UK banks and payment firms are legally required by the Payment Systems Regulator (PSR) to reimburse eligible victims up to £85,000.
What To Do If You Have Been the Victim of a Scam?
If you have been the victim of fraud there are certain steps you can take and acting quickly improves your chances of recovery:
Stop communication immediately
Do not send any further payments
Contact the bank and tell them what happened
Report the scam
Preserve evidence
Contact Refundee for expert guidance
Refundee is authorised and regulated by the Financial Conduct Authority (FRN: 937096). We are specialists in APP fraud recovery and UK banking regulations, and we have recovered over £130 million for clients to date.
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In conclusion
Fraud is now a global threat to security and it is affecting people nationwide. Behind every figure is a real person dealing with the financial and psychological impact of fraud.
Being scammed is not a reflection of intelligence or weakness. Fraudsters are professional criminals who use sophisticated psychological tactics to manipulate victims.
Talking about scams, reporting fraud, and raising awareness are all important steps in reducing the stigma surrounding scam victimisation and helping others stay protected.
Remember, you are not alone and being the victim of a scam is nothing to be ashamed of and talking about it and taking the right steps will help you in recovering.
More about Refundee
Here are the technical bits:
Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.
Registered with the Information Commissioner's Office; registration number: A8986071.
Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.
Registered as a company in England & Wales; number: 12855931.
Frequently Asked Questions (FAQs)
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According to the UK Finance annual fraud report published in June 2025, fraudsters stole a total of £1.28 billion from UK victims across 4.68 million confirmed cases - a 4% increase on the previous year.
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Investment scams recorded the largest single-year rise of any fraud category, increasing by 40% to £221.5 million. Purchase scams rose 20% and romance scams rose 23%. APP fraud overall rose to £576.4 million.
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The PSR Mandatory Reimbursement Model came into force in October 2024 and legally requires UK banks and payment firms to reimburse eligible APP fraud victims up to £85,000. It replaced the previous voluntary Contingent Reimbursement Model. Victims can claim reimbursement directly from their bank or through a regulated claims management company such as Refundee.
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If you paid via UK bank transfer, you may be eligible to claim reimbursement under the PSR Mandatory Reimbursement Model. Refundee assesses each case individually on a no win, no fee basis. Start your free eligibility assessment here.
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Authorised Push Payment fraud occurs when a victim is manipulated into authorising a bank transfer themselves. Unauthorised fraud is when a criminal accesses your account and takes money without your knowledge or consent. Both are covered by banking regulations but the reimbursement routes differ. UK Finance reported that APP fraud losses rose 4% in 2025 while unauthorised fraud fell 5%.
