Fraud prevention is becoming increasingly urgent as criminals employ more sophisticated tactics, forcing businesses, governments, and technology providers to rethink their defences.
In the UK, public-private partnerships (PPPs) are emerging as a critical force uniting financial institutions, tech companies, regulators, and government agencies to collectively fight fraud and financial crime, claims Moody’s.
Fraud inflicts not only significant financial losses—estimated globally to exceed $1tn annually—but also severe emotional and reputational damage to victims. A particularly troubling trend has been the rise in sextortion scams. In April 2024, the UK’s National Crime Agency (NCA) raised concerns after the US National Center for Missing & Exploited Children reported that global cases doubled in 2023 to 26,718, up from 10,731 the previous year. These scams exploit digital platforms to extort money, often targeting young people through social media.
The problem extends well beyond sextortion. In 2024 alone, Moody’s screening database flagged 1,193 new entities linked to romance scams, up 14% from 2023. The United States accounted for 38% of these profiles, followed by Nigeria at 14%, India at 12%, and the UK at 11%. Meanwhile, overall fraud incidents in England and Wales hit 3.9m in the year ending September 2024—a 19% annual increase—making it the most common crime affecting individuals in both regions.
Much of this surge is driven by new technologies. Fraudsters are exploiting artificial intelligence (AI) and deepfakes to create convincing fake identities, synthetic accounts, and manipulated media, all of which make verifying identities and transactions increasingly difficult for financial institutions and regulators.
In response, authorities are ramping up regulatory efforts. In July 2025, the UK government updated the Independent Review of Disclosure and Fraud Offences, calling for legislative reforms, tougher sentencing, and expanded PPPs to fight online-enabled fraud.
But technology can also be a powerful weapon against fraud. The UK’s National Fraud Initiative (NFI) prevented and detected £510m in fraud and error between April 2022 and March 2024, its highest figure to date. Similarly, coalitions like the Centre for Finance, Innovation and Technology (CFIT) are developing data-driven verification tools to safeguard financial services.
Advanced AI and machine learning systems now enable real-time screening, global data integration, and automated third-party risk management, helping organisations spot red flags faster while reducing false positives. These tools support stronger due diligence processes, allowing financial institutions and governments to respond more effectively to evolving threats.
As fraudsters adapt, collaboration remains essential. By combining technology, data, and cross-sector partnerships, businesses and governments can build stronger defences—protecting assets, reputations, and public trust from increasingly sophisticated criminal networks.
Find more on RegTech Analyst.
Copyright © 2025 FinTech Global
