Fraudulent banking transactions in the UK to total 38 million over next five years; necessitating real-time fraud detection

A new study from Juniper Research found the number of fraudulent banking and money transfer transactions in the UK will increase 111% over the next five years; from 4.2 million in 2024, to 8.8 million in 2029.

Despite the UK being one of the most technologically developed FDP (Fraud Detection & Prevention) markets, it anticipates that additional measures, such as AI-based real-time FDP, will be required to mitigate the growing threat of fraud.

Regulation to Accelerate Real-time Solution Adoption…

The research predicts that the UK’s upcoming PSR (Payment Systems Regulator) reimbursement regulation will significantly impact fintechs’ adoption of FDP solutions. The regulation aims to reduce fast-growing APP (Authorised Push Payment) fraud; the act of fraudsters tricking their victims into willingly making large bank transfers. However, there are increasing concerns surrounding the regulation’s impact on faster payments; potentially slowing them to ensure that the APPs are legitimate. Therefore, AI needs to be implemented into FDP systems to enable financial institutions to quickly identify APP fraud without diminishing the value of faster payments.

…but Data Sharing Will Maximise Reduction in Fraud

The research also identified data sharing between stakeholders in the payments landscape as vital to maximising the value of FDP solutions, especially within faster payments where real-time fraud detection will be key.

Report author Cara Malone explained: “The plethora of data collected throughout the payments processes will be utilised to develop several different FDP tools, ranging from behavioural biometrics to identification.”

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Find out more about the new report: UK Fraud Detection & Prevention in the Banking Market 2024‑2029, or download a free sample.