UK Fraud Strategy 2026-2029: Firms Must Ramp Up Defenses

The UK government’s Fraud Strategy 2026-2029 will require banks, fintechs, telecoms and online platforms to strengthen detection of synthetic identities, AI-driven impersonation and threats to instant payments, and to speed cross-sector intelligence sharing to detect criminal innovation earlier.

The measures were discussed at a June 9 webinar ahead of the NextGen FinCrime conference on July 8 in London. Speakers included Robert Eastick, director and crypto lead at iSanctuary; Dr Roger Miles, a consulting behavioral analyst; and Teresa Connors, the session moderator.

Under the strategy, firms that handle payments and identity must detect early fraud signals across channels, share operational intelligence more rapidly with peers and authorities, and adopt stronger controls for real-time transactions. The policy responds to a rise in attacks that combine synthetic IDs, AI-generated personas and deepfakes with instant payment rails and open banking links.

Robert Eastick of iSanctuary noted, “We see patterns across payments, identity and crypto markets long before the thefts appear on customer statements, but those signals rarely travel fast enough between firms or into law enforcement.” He pointed to data fragmentation and slow legal and privacy procedures as barriers to timely information exchange.

Criminals are creating synthetic identities from real and fabricated data and using AI to produce convincing voice and video impersonations. Panelists recommended pairing stronger authentication with behavioral biometrics, transaction profiling and tokenization to spot anomalies without degrading customer experience. Dr Roger Miles highlighted that early detection will depend on systems that recognize subtle changes in user behavior rather than only checking credential matches.

Securing instant payments is a challenge because fast settlement leaves little time for manual review. The panel recommended investments in real-time analytics, cloud-native fraud platforms and automated governance that can apply risk scoring and mitigation within milliseconds. Firms will need clear escalation routes and coordinated playbooks to limit large-scale exploitation while keeping services usable for legitimate customers.

Speakers addressed overlap between anti-money laundering obligations and risks in crypto and decentralized finance. Eastick warned that DeFi markets and digital asset flows are increasingly linked to mainstream payment systems and that firms should include long-term cryptographic planning and risk assessments for quantum-accelerated threats.

Panelists urged firms to adopt machine-readable intelligence-sharing standards, strengthen identity verification against synthetic and AI-driven attacks, and run cross-sector exercises simulating real-time fraud. Connors added, “If industry and government can align on what signals to share and how, we can intervene earlier and prevent harm before it spreads.”

NextGen FinCrime on July 8 will include deeper sessions on identity, AI-driven prevention and crypto risks where policymakers, industry and law enforcement will test cooperative models and technology options.