Priya Jaiswal is a recognized authority in banking and international finance, specializing in market analysis and portfolio management. Her deep understanding of global business trends provides essential context as we examine the rise in financial crime and the collaborative efforts required to safeguard the banking sector. Our conversation explores the sharp rise in fraud losses, the evolving strategies used by scammers to bypass security, and the regulatory shifts needed to protect consumer assets in an increasingly digital world.
With total payment fraud losses reaching £1.28 billion across four million cases, how are scammers successfully bypassing modern security protocols?
Fraudsters are increasingly shifting their focus toward authorized push payment scams, which now represent 32% of all losses at £576.4 million. This 19% increase shows that criminals are perfecting psychological manipulation rather than relying solely on technical hacking. Investment fraud has become particularly prevalent, jumping 40% to account for £221.5 million in losses as victims are lured into fake opportunities. These schemes exploit the trust and speed of modern banking, making it difficult for automated systems to intervene in real-time. It is a distressing trend where the human element becomes a target in a highly digitalized environment.
The data suggests that the majority of fraud originates on digital platforms. What steps are necessary to hold these third-party channels accountable?
The evidence is undeniable, with two-thirds of authorized fraud originating online and another 17% coming through telecommunication channels. These platforms provide a massive, often unverified audience for criminals to exploit through deceptive ads and unsolicited messages. There is a critical need for stronger seller verification controls and proactive fraud prevention obligations enforced by authorities like Ofcom. While banks prevented £1.68 billion in unauthorized fraud last year, the burden should not rest solely on financial institutions. Requiring tech and telecom firms to contribute financially and operationally would create a much more balanced and effective defense system.
While unauthorized losses dropped slightly, the frequency of attacks through remote card purchases is rising. How should the industry respond to this high volume of theft?
Even though total unauthorized losses fell 5% to £703.4 million, the number of reported cases actually surged by 11% to reach 3.81 million. This shift toward a higher volume of remote card purchase fraud, which totaled £423.5 million and rose 13%, shows that scammers are using stolen data for frequent transactions. It feels like a constant war of attrition against the average consumer’s sense of security and financial well-being. The industry must prioritize on-platform payment mechanisms and better data sharing to flag these stolen credentials before they can be used for online shopping. Every prevented case represents a moment where a customer was spared the frustration of a compromised account.
What is your forecast for payment fraud prevention?
I anticipate a move toward a “shared responsibility” framework where digital platforms are legally mandated to prevent fraud at the source. Banks are already making significant progress, reimbursing £354.3 million—or 61% of authorized losses—to victims in 2025 under the new reimbursement regime. However, the real victory will come from integrating AI and mobile intelligence across tech and banking sectors to stop scams before the money leaves an account. We will likely see much stricter seller verification and mandatory collaboration requirements for any firm that facilitates digital communication. Ultimately, this shift will make the environment increasingly hostile for fraudsters by closing the loopholes they currently enjoy.
