Fraud

Financial crime robs people and businesses of their hard-earned money. It seeks to hide the profits made from serious offences, it reduces the amount of money available to invest and grow businesses and makes our markets less attractive.

The firms we regulate are a vital line of defence against the criminal misuse of our financial services.

Fraud can take a variety of forms (phishing boiler rooms, insurance fraud, mortgage fraud, unauthorised fraud, identity theft, advanced fee fraud).

As part of our strategy 2025 to 2030[2], we are committed to slowing the growth in investment fraud and authorised push payment (APP) fraud.

What firms need to do 

We expect firms to make sure: 

• Your customers do not become victims of fraud.
• Your firm is not being exploited by fraudsters to move the proceeds of fraud through money muling.
• Customer data is secure[5].

You must follow regulations and our rules, including:

• Money Laundering Regulations 2017[6]
• Mandatory Reimbursement requirements[7], PSR
• Senior Management Arrangements, Systems and Controls (SYSC)[8]

We also offer guidance and examples of best practice to help firms reduce fraud:

• Financial Crime Guide[9].
• Guidance for firms that enables a risk-based approach to payments[10].

Find more resources for firms.

How we work with firms to tackle fraud

Firms already have strong incentives to manage fraud risks – fraud costs money and losses can affect firms' profitability and reputation.  

We are committed to working with those firms who want to play their part in tackling crime.

Find out about common risks and gaps we’ve seen in our supervision work:

• Combating romance fraud[17] – prevention, detection and supporting victims.
• Proceeds of fraud – detecting and preventing money mules[18].
• Firms’ use of the National Fraud Database (NFD) and money mule account detection tools[19].
• Anti-fraud controls and complaint handling in firms[20] (with a focus on APP fraud).

Sharing fraud data and intel at an industry level also plays a key role in tackling fraud across the whole system.  

We encourage firms to share key fraud information, where appropriate, via public sector or industry-led data-sharing initiatives. This can help us all understand current and emerging fraud threats. 

Key partners

We are committed to working with public and private partners, both domestically and internationally, to support the cross-system approach required to tackle fraud.

Key partners include:

• The Payments System Regulator[22] (PSR) – in its role as regulator for payments systems and the Mandatory Reimbursement Scheme.
• Regulated firms.
• Trade associations – we collaborate across the industry on generic risks such as staff and identity fraud.
• The police and other law enforcement agencies, such as the National Crime Agency (NCA).
• Key service providers to industry – organisations that provide services to combat fraud or are potential victims of fraud. For example, consultancy firms, credit reference agencies or fraud data-sharing specialists.
• The Fraud Advisory Panel[23].
• Consumers and the general public – perpetrators, victims or whistleblowers.
• International partners, including international standard-setting bodies and regulators from other jurisdictions. 

Resources for firms

From the Government:

• System priorities 2025, NCA[24]
• National risk assessment of money laundering and terrorist financing 2025[25]
• National Fraud Strategy[26]
• Economic Crime and Corporate Transparency Act 2023: Guidance to organisations on the offence of failure to prevent fraud[27]
• Understanding the cyber crime and fraud victim journey[28]
• Economic Crime Plan 2[29]
• Independent Review of Disclosure and Fraud Offences[30]

Other organisations:

• Annual Fraud Report 2025[31], UK Finance
• Failure to prevent fraud: guidance for the financial services sector[32], UK Finance